Robust Supply Chain Network Equilibrium Model

An important and often researched area of management science is mathematical modeling of a supply chain. Competitive situations can occur in supply chains owing to the involvement of multiple decision makers (players) that independently decide their behaviors. To investigate competitive supply chain networks, a supply chain network equilibrium (SCNE) model was proposed. Recently, particular attention has been paid to risk management of a supply chain. In equilibrium models, it is vital to consider players' decisions and interdependence relations. Thus, the authors consider competitive supply chain networks with uncertainties in the other players' strategies. In the proposed model, each player cannot know exactly the other players' strategies, and they decide their strategy using the minimax principle (that is, assuming the worst case). The authors call it the robust SCNE model. The authors formulate the robust SCNE model as a variational inequality problem (VIP) in which the set associated with the VIP is constructed by second-order cone constraints. The authors show the existence and uniqueness of the equilibrium under mild assumptions. In addition, they give, in a special case, some relations between players' strategies in the equilibrium and magnitudes of uncertainties. Finally, some numerical results are provided.

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    • Abstracts reprinted with permission of INFORMS (Institute for Operations Research and the Management Sciences,
  • Authors:
    • Hirano, Tatsuya
    • Narushima, Yasushi
  • Publication Date: 2019-7


  • English

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  • Accession Number: 01713634
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 22 2019 10:56AM