چکیده:
This paper discusses a problem in which n 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 this
problem. Step one considers the supply chains’ potential network structures. Step
two is based on a finite-dimensional variational inequality formulation and is solved
by a modified projection method to determine equilibrium prices. Step three selects
the equilibrium locations to shape the chains’ equilibrium network structure with the
help of the Wilson algorithm. Finally, this approach is applied to a real-world
scenario, and the results are discussed. Moreover, sensitivity analyses are conducted.
خلاصه ماشینی:
We define all the possible strategies based on location variables of the chains in the first stage of our algorithm and then use the VI formulation and modified projection method to obtain equilibrium results of continuous variables in the second stage.
Simultanous decentralized competitive supply chain network design problem Before modelling the formulation, imagine there are incoming SCs indexed by ; then, th SC has potential locations for opening plants, indexed by and , and potential locations for opening DCs, indexed by .
DC’s model (6) (7) (8) (9) Term (6) represents the objective function of DCs of the chain which includes profits captured by selling the product to the customers minus total location and transaction costs.
To clarify the proposed algorithm, consider an example in which one SC, composed of plant and DC levels, is planning to enter one virgin market in a decentralized manner, shape its network, and set wholesale and retail prices and flows.
Modified plants model (10) (11) Term (10) represents the objective function of the opened plants for each chain that includes total revenue from selling the product to the DCs of the chain minus total location and transaction costs and; constraint (11) is related to the non-negativity restriction on the corresponding decision variables.
They want to open one plant and two DCs from two and four potential locations and shape their networks in a decentralized manner in a dynamic competition and set the wholesale and retail prices.