Multiperiod competitive supply chain networks with inventorying and a transportation network equilibrium reformulation

Zugang Liu, Anna Nagurney

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

In this paper, we present a multitiered dynamic supply chain network equilibrium modeling framework in which the decision-makers have sufficient information about the future and seek to determine their optimal plans that maximize their profits over the multiperiod planning horizon. We construct the finite-dimensional variational inequality governing the equilibrium of the multiperiod competitive supply chain network. The model allows us to investigate the interplay of the heterogeneous decision-makers in the supply chain in a dynamic setting, and to compute the resultant equilibrium pattern of product outputs, transactions, inventories, and product prices. We then establish the supernetwork equivalence of the multiperiod supply chain model with a properly configured transportation network, which provides a new interpretation of the equilibrium conditions of the former in terms of paths and path flows. This framework offers great modeling flexibility so that, for example, transportation delay and/or perishable products can be easily handled, as we also demonstrate. Numerical examples are provided to illustrate how such multiperiod supply chain problems can be reformulated and solved as transportation network equilibrium problems in practice.

Original languageEnglish (US)
Pages (from-to)471-503
Number of pages33
JournalOptimization and Engineering
Volume13
Issue number3
DOIs
StatePublished - Sep 1 2012

Fingerprint

Network Equilibrium
Transportation Networks
Reformulation
Supply Chain
Supply chains
Path
Equilibrium Problem
Modeling
Variational Inequalities
Transactions
Profit
Horizon
Profitability
Maximise
Flexibility
Planning
Equivalence
Sufficient
Numerical Examples
Output

All Science Journal Classification (ASJC) codes

  • Software
  • Civil and Structural Engineering
  • Aerospace Engineering
  • Mechanical Engineering
  • Control and Optimization
  • Electrical and Electronic Engineering

Cite this

@article{e2bc954bc29e44a5a2e8192a4a954508,
title = "Multiperiod competitive supply chain networks with inventorying and a transportation network equilibrium reformulation",
abstract = "In this paper, we present a multitiered dynamic supply chain network equilibrium modeling framework in which the decision-makers have sufficient information about the future and seek to determine their optimal plans that maximize their profits over the multiperiod planning horizon. We construct the finite-dimensional variational inequality governing the equilibrium of the multiperiod competitive supply chain network. The model allows us to investigate the interplay of the heterogeneous decision-makers in the supply chain in a dynamic setting, and to compute the resultant equilibrium pattern of product outputs, transactions, inventories, and product prices. We then establish the supernetwork equivalence of the multiperiod supply chain model with a properly configured transportation network, which provides a new interpretation of the equilibrium conditions of the former in terms of paths and path flows. This framework offers great modeling flexibility so that, for example, transportation delay and/or perishable products can be easily handled, as we also demonstrate. Numerical examples are provided to illustrate how such multiperiod supply chain problems can be reformulated and solved as transportation network equilibrium problems in practice.",
author = "Zugang Liu and Anna Nagurney",
year = "2012",
month = "9",
day = "1",
doi = "10.1007/s11081-011-9170-2",
language = "English (US)",
volume = "13",
pages = "471--503",
journal = "Optimization and Engineering",
issn = "1389-4420",
publisher = "Springer Netherlands",
number = "3",

}

Multiperiod competitive supply chain networks with inventorying and a transportation network equilibrium reformulation. / Liu, Zugang; Nagurney, Anna.

In: Optimization and Engineering, Vol. 13, No. 3, 01.09.2012, p. 471-503.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Multiperiod competitive supply chain networks with inventorying and a transportation network equilibrium reformulation

AU - Liu, Zugang

AU - Nagurney, Anna

PY - 2012/9/1

Y1 - 2012/9/1

N2 - In this paper, we present a multitiered dynamic supply chain network equilibrium modeling framework in which the decision-makers have sufficient information about the future and seek to determine their optimal plans that maximize their profits over the multiperiod planning horizon. We construct the finite-dimensional variational inequality governing the equilibrium of the multiperiod competitive supply chain network. The model allows us to investigate the interplay of the heterogeneous decision-makers in the supply chain in a dynamic setting, and to compute the resultant equilibrium pattern of product outputs, transactions, inventories, and product prices. We then establish the supernetwork equivalence of the multiperiod supply chain model with a properly configured transportation network, which provides a new interpretation of the equilibrium conditions of the former in terms of paths and path flows. This framework offers great modeling flexibility so that, for example, transportation delay and/or perishable products can be easily handled, as we also demonstrate. Numerical examples are provided to illustrate how such multiperiod supply chain problems can be reformulated and solved as transportation network equilibrium problems in practice.

AB - In this paper, we present a multitiered dynamic supply chain network equilibrium modeling framework in which the decision-makers have sufficient information about the future and seek to determine their optimal plans that maximize their profits over the multiperiod planning horizon. We construct the finite-dimensional variational inequality governing the equilibrium of the multiperiod competitive supply chain network. The model allows us to investigate the interplay of the heterogeneous decision-makers in the supply chain in a dynamic setting, and to compute the resultant equilibrium pattern of product outputs, transactions, inventories, and product prices. We then establish the supernetwork equivalence of the multiperiod supply chain model with a properly configured transportation network, which provides a new interpretation of the equilibrium conditions of the former in terms of paths and path flows. This framework offers great modeling flexibility so that, for example, transportation delay and/or perishable products can be easily handled, as we also demonstrate. Numerical examples are provided to illustrate how such multiperiod supply chain problems can be reformulated and solved as transportation network equilibrium problems in practice.

UR - http://www.scopus.com/inward/record.url?scp=84865436206&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84865436206&partnerID=8YFLogxK

U2 - 10.1007/s11081-011-9170-2

DO - 10.1007/s11081-011-9170-2

M3 - Article

AN - SCOPUS:84865436206

VL - 13

SP - 471

EP - 503

JO - Optimization and Engineering

JF - Optimization and Engineering

SN - 1389-4420

IS - 3

ER -