Supply Chain Networks with Multicritera Decision Makers

Abstract

This paper presents a theoretical framework for supply chain network modeling, analysis, and computation in the presence of competition, in which all the decision-makers, who are located at distinct tiers of the network, are multicriteria decision-makers. In partic- ular, in this framework, transportation time and transportation cost are explicit criteria and these can depend on the service level provided. The optimality conditions of the dierent tiers of decision-makers, consisting of manufacturers, retailers, and consumers are derived, as well as the equilibrium conditions of the integrated model. The variational inequality formulation of the governing equilibrium conditions is then utilized to obtain qualitative properties as well as a computational procedure for the determination of the equilibrium product shipments between the tiers of the network, the prices, as well as the service levels.

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