Supply Chain Network Design Under Profit Maximization and Oligopolistic Competition
نویسنده
چکیده
In this paper, we model the supply chain network design problem with oligopolistic firms who are involved in the competitive production, storage, and distribution of a homogeneous product to multiple demand markets. The profit-maximizing firms select both the capacities associated with the various supply chain network activities as well as the product quantities. We formulate the governing Nash-Cournot equilibrium conditions as a variational inequality problem and identify several special cases of the model, notably, a generalization of a spatial oligopoly and a classical oligopoly problem to include design capacity variables. The proposed computational approach, which is based on projected dynamical systems, fully exploits the network structure of the problems and yields closed form solutions at each iteration. In order to illustrate the modeling framework and the algorithm, we also provide solutions to a spectrum of numerical supply chain network oligopoly design examples. This paper makes a contribution to game theoretic modeling of competitive supply chain network design problems in an oligopolistic setting.
منابع مشابه
A Robust Competitive Global Supply Chain Network Design under Disruption: The Case of Medical Device Industry
In this study, an optimization model is proposed to design a Global Supply Chain (GSC) for a medical device manufacturer under disruption in the presence of pre-existing competitors and price inelasticity of demand. Therefore, static competition between the distributors’ facilities to more efficiently gain a further share in market of Economic Cooperation Organization trade agreement (ECOTA) is...
متن کاملCompetitive Supply Chain Network Design Considering Marketing Strategies: A Hybrid Metaheuristic Algorithm
In this paper, a comprehensive model is proposed to design a network for multi-period, multi-echelon, and multi-product inventory controlled the supply chain. Various marketing strategies and guerrilla marketing approaches are considered in the design process under the static competition condition. The goal of the proposed model is to efficiently respond to the customers’ demands in the presenc...
متن کاملBenders Decomposition Algorithm for Competitive Supply Chain Network Design under Risk of Disruption and Uncertainty
In this paper, bi-level programming is proposed for designing a competitive supply chain network. A two-stage stochastic programming approach has been developed for a multi-product supply chain comprising a capacitated supplier, several distribution centers, retailers and some resellers in the market. The proposed model considers demand’s uncertainty and disruption in distribution centers and t...
متن کاملEffects of integrating physical and financial flows through a closed-loop supply chain network under uncertain demand and return
The impact of financial challenges on the profit of a supply chain, have caused the researcher to model the supply chain network by considering the operational and financial dimensions. Also, the establishment of a closed loop supply chain (CLSC) network has a high effect on economic profit. So, the purpose of this study is to design a stochastic closed loop supply chain network by considering ...
متن کاملSimultaneous Decentralized Competitive Supply Chain Network Design under Oligopoly Competition
This paper discusses a problem in which decentralized supply chains enter the market simultaneously with no existing rival chains, shape the supply chains’ networks, and set wholesale and retail prices in a noncooperative manner. All the chains produce either identical or highly substitutable products. Customer demand is elastic and price-dependent. A three-step algorithm is proposed to solve ...
متن کامل