scholarly journals Decentralized Supply Chain Formation: A Market Protocol and Competitive Equilibrium Analysis

2003 ◽  
Vol 19 ◽  
pp. 513-567 ◽  
Author(s):  
W. E. Walsh ◽  
M. P. Wellman
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Competitive Equilibrium ◽  
Market Price ◽  
Equilibrium Analysis ◽  
Chain Formation ◽  
Resource Contention ◽  
Optimal Allocations ◽  
Competitive Equilibria ◽  
Supply Chain Formation

Supply chain formation is the process of determining the structure and terms of exchange relationships to enable a multilevel, multiagent production activity. We present a simple model of supply chains, highlighting two characteristic features: hierarchical subtask decomposition, and resource contention. To decentralize the formation process, we introduce a market price system over the resources produced along the chain. In a competitive equilibrium for this system, agents choose locally optimal allocations with respect to prices, and outcomes are optimal overall. To determine prices, we define a market protocol based on distributed, progressive auctions, and myopic, non-strategic agent bidding policies. In the presence of resource contention, this protocol produces better solutions than the greedy protocols common in the artificial intelligence and multiagent systems literature. The protocol often converges to high-value supply chains, and when competitive equilibria exist, typically to approximate competitive equilibria. However, complementarities in agent production technologies can cause the protocol to wastefully allocate inputs to agents that do not produce their outputs. A subsequent decommitment phase recovers a significant fraction of the lost surplus.

scholarly journals Automating Forward and Reverse Supply Chains in the Context of Industry 4.0

2019 ◽  
Vol 64 (1) ◽  
pp. 16-32
Author(s):  
Florina Livia Covaci
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Automobile Industry ◽  
Industrial Revolution ◽  
Current Approach ◽  
Raw Material ◽  
Chain Formation ◽  
Market Values ◽  
Reverse Supply Chains ◽  
Supply Chain Formation

Abstract The 4th industrial revolution brings in a transformation of the traditional supply chain towards a digital supply chain. The machines will be able to use algorithms that will enable them to automate the supply chain formation process and to quickly react to disruptions. The current approach proposes a mechanism based on a message passing inference scheme in order to address the automated supply chain formation problem in a closed-loop supply chain by integrating forward and reverse supply chains. Forward supply chain imply a series of activities required to produce new products from virgin materials and distribute them to consumers while reverse supply chains require collecting used products from consumers and reprocessing them to either recover their leftover market values or dispose of them. It has become common for companies involved in a forward supply chain to also carry out collection and reprocessing of used products. Strict environmental regulations and diminishing raw material resources have intensified the importance of reverse supply chains at an increasing rate. The proposed mechanism is evaluated using two type of supply chain configurations from textile and automobile industry, demonstrating that automated integration of reverse supply chains along with forward supply chains, lead to benefits for the participants in the supply chain.

An integration of bidding-oriented product conceptualization and supply chain formation

2008 ◽  
Vol 59 (2-3) ◽  
pp. 128-144 ◽  
Author(s):  
Wei Yan ◽  
Chun-Hsien Chen ◽  
Youfang Huang ◽  
Weijian Mi
Keyword(s):  
Supply Chain ◽  
Chain Formation ◽  
Supply Chain Formation

scholarly journals COVID-19 and Global Supply Chain Configuration: Economic and Emissions Impacts of Australia-China Trade Disruptions

2021 ◽  
Vol 9 ◽  
Author(s):  
Xunpeng Shi ◽  
Tsun Se Cheong ◽  
Michael Zhou
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Value Chain ◽  
Equilibrium Analysis ◽  
Output Analysis ◽  
Domestic Production ◽  
China Trade ◽  
Gross Domestic Production ◽  
Trade Embargo ◽  
Production Losses

Economic shocks from COVID-19, coupled with ongoing US-China tensions, have raised debates around supply chain (or global value chain) organisation, with China at the centre of the storm. However, quantitative studies that consider the global and economy-wide impacts of rerouting supply chains are limited. This study examines the economic and emissions impacts of reorganising supply chains, using Australia-China trade as an example. It augments the Hypothetical Extraction Method by replacing traditional Input-Output analysis with a Computable General Equilibrium analysis. The estimation results demonstrate that in both exports and imports, a trade embargo between Australia and China – despite being compensated for by alternative supply chains—will cause gross domestic production losses and emissions increases for both countries and the world overall. Moreover, even though all other economies gain from the markets left by China, many of them incur overall gross domestic production losses and emission increases. The finding that the Association of Southeast Asian Nations and India may also suffer from an Australia-China trade embargo, despite a gain in trade volume, suggests that no country should add fuel to the fire. The results suggest that countries need to defend a rules-based trading regime and jointly address supply chain challenges.

Opportunistic supply chain formation from qualified partners for a new market demand

2006 ◽  
Vol 57 (9) ◽  
pp. 1089-1099 ◽  
Author(s):  
S S Chauhan ◽  
J-M Proth ◽  
A M Sarmiento ◽  
R Nagi
Keyword(s):  
Supply Chain ◽  
Market Demand ◽  
Chain Formation ◽  
Supply Chain Formation

scholarly journals Supply Chain Competition: A Market Game Approach

2020 ◽  
Vol 66 (12) ◽  
pp. 5648-5664 ◽  
Author(s):  
C. Gizem Korpeoglu ◽  
Ersin Körpeoğlu ◽  
Soo-Haeng Cho
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Operations Management ◽  
Wholesale Price ◽  
Market Price ◽  
Market Game ◽  
Wholesale Market ◽  
Supply Chain Competition ◽  
Local Supply ◽  
Buyer Power

We study supply chains where multiple suppliers sell to multiple retailers through a wholesale market. In practice, we often observe that both suppliers and retailers tend to influence the wholesale market price that retailers pay to suppliers. However, existing models of supply chain competition do not capture retailers’ influence on the wholesale price (i.e., buyer power) and show that the wholesale price and the order quantity per retailer do not change with the number of retailers. To overcome this limitation, we develop a competition model based on the market game mechanism in which the wholesale price is determined based on both suppliers’ and retailers’ decisions. When taking into account retailers’ buyer power, we obtain the result that is consistent with the observed practice: As the number of retailers increases, each retailer’s buyer power decreases, and each retailer is willing to pay more for her order, so the wholesale price increases. In this case, supply chain expansion to include more retailers (or suppliers) turns out to be more beneficial in terms of supply chain efficiency than what the prior literature shows without considering buyer power. Finally, we analyze the integration of two local supply chains and show that although the profit of the integrated supply chain is greater than the sum of total profits of local supply chains, integration may reduce the total profit of firms in a retailer-oriented supply chain that has more retailers than suppliers. This paper was accepted by Charles Corbett, operations management.

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