Multiperiod supply chain network equilibrium model with electronic commerce and multicriteria decision-making
RAIRO - Operations Research - Recherche Opérationnelle, Tome 46 (2012) no. 3, pp. 253-287.

In this paper, we develop a supply chain network equilibrium model in which electronic commerce in the presence of both B2B (business-to-business) and B2C (business-to-consumer) transactions, multiperiod decision-making and multicriteria decision-making are integrated. The model consists of three tiers of decision-makers (manufacturers, retailers and consumers at demand markets) who compete within a tier but may cooperate between tiers. Both manufacturers and retailers are concerned with maximization of profit as well as minimization of risk, whereas consumers take both the prices charged by manufacturers and retailers, along with the corresponding costs of transacting, in making their consumption decisions. Increasing relationship levels are assumed to decrease costs of transacting as well as risk costs. Establishing and maintaining these relationship levels incur some costs that have to be borne by the various decision-makers. We study the interaction among different tiers of decision-makers, describe their multicriteria decision-making behavior and derive the optimality conditions as well as the equilibrium conditions which are then shown to satisfy a finite-dimensional variational inequality problem. We then establish qualitative properties of the equilibrium model under some reasonable assumptions and illustrate the model with several numerical examples.

DOI : 10.1051/ro/2012016
Classification : 49J40, 90B06, 91A40
Mots clés : supply chain, network equilibrium, electronic commerce, multiperiod decision-making, multicriteria decision-making, variational inequality
@article{RO_2012__46_3_253_0,
     author = {Liu, Guoshan and Xu, Shiqin},
     title = {Multiperiod supply chain network equilibrium model with electronic commerce and multicriteria decision-making},
     journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
     pages = {253--287},
     publisher = {EDP-Sciences},
     volume = {46},
     number = {3},
     year = {2012},
     doi = {10.1051/ro/2012016},
     mrnumber = {2989086},
     zbl = {1250.49010},
     language = {en},
     url = {http://archive.numdam.org/articles/10.1051/ro/2012016/}
}
TY  - JOUR
AU  - Liu, Guoshan
AU  - Xu, Shiqin
TI  - Multiperiod supply chain network equilibrium model with electronic commerce and multicriteria decision-making
JO  - RAIRO - Operations Research - Recherche Opérationnelle
PY  - 2012
SP  - 253
EP  - 287
VL  - 46
IS  - 3
PB  - EDP-Sciences
UR  - http://archive.numdam.org/articles/10.1051/ro/2012016/
DO  - 10.1051/ro/2012016
LA  - en
ID  - RO_2012__46_3_253_0
ER  - 
%0 Journal Article
%A Liu, Guoshan
%A Xu, Shiqin
%T Multiperiod supply chain network equilibrium model with electronic commerce and multicriteria decision-making
%J RAIRO - Operations Research - Recherche Opérationnelle
%D 2012
%P 253-287
%V 46
%N 3
%I EDP-Sciences
%U http://archive.numdam.org/articles/10.1051/ro/2012016/
%R 10.1051/ro/2012016
%G en
%F RO_2012__46_3_253_0
Liu, Guoshan; Xu, Shiqin. Multiperiod supply chain network equilibrium model with electronic commerce and multicriteria decision-making. RAIRO - Operations Research - Recherche Opérationnelle, Tome 46 (2012) no. 3, pp. 253-287. doi : 10.1051/ro/2012016. http://archive.numdam.org/articles/10.1051/ro/2012016/

[1] K.J. Arrow, M.D. Intrilligator, Handbook of Mathematical Economics. Elsevier, New York (1982). | Zbl

[2] F. Bernstein and A. Federgruen, Pricing and replenishment stratgies in a distribution system with competing retailers. Nav. Res. Logist. 51 (2003) 409-426. | MR | Zbl

[3] P.J. Cai, The Time-Dependent Supply Chain Network Equilibrium Model. Master Thesis. National Central University, Taiwan (2003).

[4] R.H. Coase, The nature of the firm. Economica New Series 4 (1937) 386-405.

[5] J.M. Cruz, Dynamics of supply chain networks with corporate social responsibility through integrated environmental decision-making. Eur. J. Oper. Res. 184 (2008) 1005-1031. | MR | Zbl

[6] J. Dong, D. Zhang and A. Nagurney, Supply chain networks with multicriteria decision-makers, in Transportation and Traffic Theory in the 21st Century, edited by M.A.P. Taylor. Pergamon (2002) 179-196.

[7] D. Hammond and P. Beullens, Closed-loop supply chain network equilibrium under legislation. Eur. J. Oper. Res. 183 (2007) 895-908. | Zbl

[8] M.E. Johnson, Learning from toys : Lessons in managing supply chain risk from toy industry. California Management Review 43 (2001) 106-130.

[9] U. Juttner, H. Peck and M. Christopher, Supply chain risk management : Outlining and agenda for future research. Int. J. Logist. : Res. Appl. 6 (2003) 197-210.

[10] D. Kinderlehrer and G. Stampacchia, An Introduction to Variational Inequailties and Their Application. Academic Press, New York (1980). | MR | Zbl

[11] F.A. Kuglin and B.A. Rosenbaum, The Supply Chain Network @ Internet Speed. American Management Association, New York (2001).

[12] X.Q. Li, Research on The Supply Chain Supernetwork with Electronic Commerce Based on the Variational Inequality, Master Thesis. Dalian Maritime University, Dalian (2007).

[13] Z. Liu and A. Nagurney, Multiperiod competitive supply chain networks with inventorying and a transportation network equilibrium reformulation. Optimization Engineering 13 (2012) 471-503. | MR | Zbl

[14] C.F. Li, E.S. Qi, and J. Li, Dynamic equilibrium of supply chain network. J. Tianjin University 39 (2006) 274-278.

[15] D. Lucking-Reiley and D.F. Spulber, Business-to-business electronic commerce. J. Econ. Perspect. 15 (2001) 55-68.

[16] A. Nagurney, Network Economics : A Variational Inequality Approach. Kluwer Academic Publishers, Dordrecht, Netherlands (1993). | MR | Zbl

[17] A. Nagurney, Network Economics : A Variational Inequality Approach (second and revised edition). Kluwer Academic Publishers, Dordrecht, Netherlands (1999). | MR | Zbl

[18] A. Nagurney, A multiclass, multicriteria traffic network equilibrium model. Math. Comput. Modell. 32 (2000) 393-411. | MR | Zbl

[19] A. Nagurney and J. Aronson, A general spatial price equilibrium model : formulation, solution, and computational results. J. Comput. Appl. Math. 22 (1988) 339-357. | MR | Zbl

[20] A. Nagurney and J. Dong, Supernetworks : Decision-Making for the Information Age. Edward Elgar Publishing, Cheltenham, England (2002).

[21] A. Nagurney and J. Dong, A multiclass, multicriteria traffic network equilibrium model with elastic demand. Transp. Res. B 36 (2002) 445-469. | Zbl

[22] A. Nagurney, J. Dong and D. Zhang, Multicriteria spatial price networks : statics and dynamics, in Equilibrium problems and variational models, edited by P. Daniele, F. Giannessi, A. Maugeri. Springer (2000) 229-321. | Zbl

[23] A. Nagurney, J. Dong and D. Zhang, A supply chain network equilibrium model. Transp. Res. Part E 38 (2002) 281-303.

[24] A. Nagurney, J. Loo, J. Dong and D. Zhang, Supply chain networks and electronic commerce : A theoretical perspective. Netnomics 4 (2002) 187-220.

[25] A. Nagurney and L.S. Nagurney, Sustainable supply chain network design : a multicriteria perspective. ISUE 3 (2010) 189-197.

[26] A. Nagurney and F. Toyasaki, Supply chain supernetworks and environmental criteria. Transp. Res. D 8 (2003) 185-213.

[27] A. Nagurney, T. Wakolbinger and Z. Li, The evolution and emergence of Integrated social and financial networks with electronic transactions : A dynamic supernetwork theory for the modeling, analysis, and computation of financial flows and relationship levels. Comput. Econ 27 (2006) 353-393. | Zbl

[28] A. Norrman and U. Jansson, Ericsson's proactive supply chain risk management approach after a serious sub-supplier accident. Int. J. Phys. Distrib. Logist. Manag. 34 (2004) 434-456.

[29] G. Perakis and A. Sood, Competitive multi-period pricing for perishable products : a robust optimization approach. Math. Program. 107 (2006) 295-335. | MR | Zbl

[30] R.E. Quandt, A probabilistic abstract mode model, in Studies in travel demand VIII. Mathematica, Princeton, New Jersey (1967) 127-149.

[31] P.A. Samuelson, Spatial price equilibrium and linear programming. Am. Econ. Rev. 42 (1952) 283-303.

[32] T.J. Stewart and R.C. Van Den Honert, Trends in multicriteria decision-making, in Proc. of the 13th International Conference on Multiple Criteria Decision Making, Berlin (1998). | MR | Zbl

[33] T. Wakolbinger and A. Nagurney, Dynamic supernetworks for the integration of social networks and supply chains with electronic commerce : Modeling and analysis of buyer-seller relationships with computations. Netnomics 6 (2004) 153-185. | Zbl

[34] O.E. Williamson, Transaction cost economics : The governance of contractual relations. J. Law Econ. 22 (1979) 233-261.

Cité par Sources :