scholarly journals A complementarity model and algorithm for direct multi-commodity flow supply chain network equilibrium problem

2017 ◽  
Vol 13 (5) ◽  
pp. 0-0
Author(s):  
Haodong Chen ◽  
◽  
Hongchun Sun ◽  
Yiju Wang ◽  
Author(s):  
Huey-Kuo Chen ◽  
Huey-Wen Chou

This chapter deals with a time-dependent supply chain network equilibrium (TD-SCNE) problem, which allows product flows to be distributed over a network, not only between two successive sectors in the same time period (a transaction), but also between two successive periods for the same agency (an inventory). Since product price and flow interactions are inherently embedded within it, the TD-SCNE problem is formulated as a variational inequality (VI) model. A three-loop-nested diagonalization method, along with a specially designed supernetwork representation, then is proposed and demonstrated with a numerical example. In equilibrium, for each time-dependent retailer agency or demand market, the product prices of transactions are the same and minimum, no matter when or where the product comes from, which is a realization of the Wardropian first principle. The proposed framework can be extended with minor modifications to other TD-SCNE-related equilibrium problems.


2012 ◽  
Vol 6-7 ◽  
pp. 1188-1194
Author(s):  
Hao Sun ◽  
Gui Tao Zhang ◽  
Ying Liu

To obtain equilibrium patterns of a competitive supply chain network with stochastic demand, risk-averse channel members, production capacity constraints and price ceilings, we derived the optimization conditions of manufacturers, retailers and demand markets via variational inequality respectively, and then established the whole supply chain network equilibrium problem. Projection and contraction method was utilized to solve the model. Numerical examples were given to illustrate the impact of risk-averse degree of manufacturers and retailers on network equilibrium patterns in case of capacity constraints and price ceilings. The results show that under the same condition, the system profits decrease to a lower level when the manufacturers’ risk degree increase compared with retailers. The retailers bear more loss due to their positions in the supply chain.


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