SUPPLY CHAIN SUPERNETWORKS AND ENVIRONMENTAL CRITERIA

This paper proposes a framework for the modeling, analysis and computation of solutions to supply chain problems in the presence of electronic commerce, in which the decision makers are faced with multiple criteria. These criteria include environmental concerns. First, the optimality conditions for the manufacturers, retailers and consumers are established. The equilibrium conditions are then derived and the variational inequality formulation is provided. A continuous time adjustment process is also proposed for the study of the disequilibrium dynamics. The authors also apply an algorithm for the determination of equilibrium prices and product shipments as well as the emissions generated in several supply chain examples. Results demonstrate that supply chain network models with multiple decision makers and associated environmental concerns can be formulated, analyzed qualitatively and solved. Although the supernetwork model constructed in this paper is stylized, it contains important features such as the behavior of distinct decision makers, explicit transaction costs and transportation versus telecommunication tradeoffs in decision makers. Once solved, the model also provides the equilibrium product shipments between tiers of the supply chain as well as the demand market and retailer prices.

Language

  • English

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Filing Info

  • Accession Number: 00942391
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 10 2003 12:00AM