Supply chain network equilibrium problem with capacity constraints

2008 ◽  
Vol 87 (4) ◽  
pp. 605-621 ◽  
Author(s):  
Huey-Kuo Chen ◽  
Huey-Wen Chou
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.


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.


2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Yongtao Peng ◽  
Dan Xu ◽  
Yaya Li ◽  
Kun Wang

With the further development of manufacturing servitization, the supply chain established by enterprises has gradually evolved into a product service supply chain. The introduction of service flow has made supply chain management more complicated. In this paper, we build a product service supply chain network composed of raw material suppliers, service providers, manufacturing integrators, and customers. The equilibrium model for decision-makers at all levels is established by variational inequality. In particular, we emphasize the impact of product and service capacity constraints and changes in the product service integration ratio on network equilibrium. The results show that, while capacity constraints on production tend to stabilize and unify the market price, service-related capacity constraints polarize the customer pay price. That is to say, product capability constraints limit the quality of product service systems, while service capability constraints limit the types of product service systems. Furthermore, the introduction of service flow and integration with products creates a more closely networked relationship between the upper and lower layers of the product service supply chain, and an increase in the service proportion will increase the network equilibrium profit.


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