Abstract

This paper builds a dynamic supply chain network, where firms can select suppliers according to the trust, the selling price or just randomly. Simulation results show that the trust-based rule can significantly increase the aggregated working capital and decrease firm's likelihoods of bankruptcy. Moreover, firms' sizes under trust-based and price-based rules follow power-law distributions. The degree distribution of supply chain network under price-based rule follows a power-law distribution, while those under trust-based and randomly-choosing rules are similar to that of random network. Furthermore, results also indicate that trust-based rule is the most robust one against random and targeted disruptions.

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