Action of Traffic Measures on Supply Chain Network Equilibrium

Abstract

The decision of freight transport are typically made for SCNE(Supply Chain Network Equilibrium),and its behavior is known to be influenced by regional conditions of traffic network,but little is known about role of traffic measures which have efficiency on SCNE.Unlike other studies in the extent literature,we aimed to cover the interaction between traffic measures and SCNE. We formulated variational inequality in terms of strategies and strategic flows as SCNE conditions.We employed an iterative algorithm of MSA to this variational inequality by solving a dynamic program.A numerical example proves the validity of our model and algorithm,and we show that our algorithm has faster convergence ability than existing algorithms.Moreover,results show that the amount of products and surpluses of SCN increase as traffic link capacity increases.We conclude that improvement of traffic network could enhance the efficiency of SCN.