Supply Chain Network Equilibrium Model Research Articles

An equilibrium analysis of blockchain integration strategies in the livestock meat supply chain considering consumers’ preference for quality trust

PurposeThis paper aims to explore blockchain integration strategies within a three-level livestock meat supply chain in which consumers have a preference for quality trust in livestock meat products. The paper investigates three questions: First, how does consumers’ preference for quality trust affect blockchain integration and transaction decisions among supply chain participants? Second, under what circumstances will retailers choose to participate in the blockchain? Finally, how can other factors such as blockchain costs and supplier–retailer partnership value affect integration decisions?Design/methodology/approachThis paper formulates a supply chain network equilibrium model and employs the logarithmic-quadratic proximal prediction-correction method to obtain equilibrium decisions. Extensive numerical studies are conducted using a pork supply chain network to analyze the implications of blockchain integration for different supply chain participants.FindingsThe results reveal several key insights: First, suppliers’ increased blockchain integration, driven by higher quality trust preference, can negatively affect their profits, particularly, with excessive trust preferences and high blockchain costs. Second, an increase in consumers’ preference for quality trust expands the range of unit operating costs for retailers engaging in blockchain. Finally, the supplier–retailer partnership drives retailer blockchain participation, facilitating enhanced information sharing to benefit the entire supply chain.Originality/valueThis study provides original insights into blockchain integration strategies in an agricultural supply chain through the application of the supply chain network equilibrium model. The investigation of several key factors on equilibrium decisions provides important managerial implications for different supply chain participants to address consumers’ preference for quality trust and enhance overall supply chain performance.

The Optimal Logistics Distribution Service Strategy of the E-commerce Closed-Loop Supply Chain Network under Blockchain Technology and the Government Blockchain Subsidy

The booming development of e-commerce has promoted the diversified development of logistics distribution services (LDS). For LDS, e-commerce retailers (e-retailers) often choose either the outsourced logistics distribution services strategy (OLDSS) or the self-built logistics distribution services strategy (SBLDSS). Although there are problems such as products getting lost and damaged during the logistics distribution process, the high transparency and traceability characteristics of blockchain technology (BT) can help solve the problem of products being lost and damaged in the logistics distribution process. However, due to the high cost of BT, e-retailers may encounter reduced sales, which causes the supply chain corporate profits to decrease. To encourage the BT investment enthusiasm of the e-retailers and regulate corporate profits, the government implements subsidies for e-retailers’ BT, namely, the government blockchain subsidy (GBS). In addition, in recent years, environmental degradation has become increasingly severe, causing negative impacts on people’s lives. To promote sustainable development, we use variational inequality to establish an e-commerce closed-loop supply chain (E-CLSC) network equilibrium model in which the network equilibrium decisions of e-retailers choosing the OLDSS and those choosing the SBLDSS are obtained. Then, we analyze the impact of the BT input cost and the GBS quota on equilibrium decisions by studying their properties and verifying the theoretical results by performing numerical examples. Finally, we analyze the profits of the e-retailers to obtain the impact of the BT input cost and the GBS quota on e-retailers’ choice of the optimal LDS strategy; in this way, we provide a scientific basis for e-retailers to choose the optimal LDS strategy. The results show that increasing the BT input costs reduces e-retailers’ product sales under the two LDS strategies, which decreases the production rate and the recovery rate of the products. When the BT input cost is low, SBLDSS is the best choice for e-retailers. When the BT input cost is high, OLDSS is the best choice for e-retailers. Moreover, there is a positive correlation between GBS and e-retailers’ product sales; thus, GBS is conducive to expanding market demand, regulating the profits of manufacturers, increasing the e-retailers’ profits, improving the enthusiasm of the e-retailers for BT investment, and promoting the overall development of supply chain enterprises. For e-retailers, choosing the OLDSS can lead to a better development of the E-CLSC.

Research on the Network Equilibrium of Fresh Agricultural Product Supply Chain with Third Party Logistics Participation in Decision Making

Introducing Third-party logistics into the supply chain of fresh agricultural products can reduce the logistics cost of the supply chain and improve the freshness and quality of fresh agricultural products. Taking the fresh agricultural product supply chain network, which includes three decision-making entities: fresh agricultural product suppliers, 3PL service providers, and retailers, as the research object, a fresh agricultural product supply chain network equilibrium model is constructed using variational inequality theory. The impact of 3PL service providers' logistics service level on their equilibrium transaction volume and overall profit is studied. The research results show that when Third-party logistics is involved in the supply chain of fresh agricultural products, considering the logistics service level of 3PL service providers, with the improvement of service level, the overall profit of the supply chain of fresh agricultural products increases. It is a beneficial attempt to realize the profit of the supply chain of fresh agricultural products to improve the freshness and quality of fresh agricultural products through Third-party logistics; When the logistics service level rises to a certain level, and the service level continues to improve, the overall profit growth of the supply chain decreases. It is necessary to improve the impact of logistics service level on the freshness and quality of fresh agricultural products through other forms.

The Impact of R&D Subsidy and IPP on Global Supply Chain Networks System—A Technology Spillover Perspective

In the current globalized business environment, multinational competition has become the norm for companies. This paper considers technology spillovers among manufacturers and develops a global supply chain network equilibrium model. Firstly, the optimal decision-making behaviors of manufacturers, retailers, and demand markets are characterized separately. Secondly, based on the variational inequality theory, the optimal decision-making behaviors of global supply chain members are transformed. Finally, the model is solved and analyzed using the Euler algorithm. The primary objective is to explore the impact of research and development (R&D) subsidies and intellectual property protection (IPP) strategies on manufacturers’ research and development technological levels. Furthermore, the study delves into their effects on the production and transactions of the global supply chain network and social welfare. The following conclusions are drawn: (1) Technology spillovers have a positive effect on the technological level achieved by manufacturers through research and development investment and social welfare. However, intense technological competition may harm manufacturers’ profits. (2) Under the symmetric subsidy policy, higher subsidies may lead to a decrease in social welfare. (3) Under symmetric intellectual property protection policies, increasing the intensity of intellectual property protection benefits manufacturers but is detrimental to retailers and social welfare. However, under an asymmetric intellectual property protection strategy, implementing high-intensity intellectual property protection by high-technology countries is advantageous for retailers and social welfare. This conclusion has contributed to the technical research and development and production operation decision making of global supply chain members, as well as government policy formulation, and has also provided a new perspective for theoretical research in the field of global supply networks.

A Rental Platform Service Supply Chain Network Equilibrium Model Considering Digital Detection Technology Investment and Big Data Marketing

Digital transformation is reshaping the decision making management of the rental service mode in the manufacturing industry, and improving digital detection technology and big data marketing have become effective ways to create value. Based on the three-level rental platform service supply chain network structure composed of manufacturers, rental platform operators and the demand market, a supply chain network equilibrium model considering the digital detection technology input and big data marketing is constructed by using variational inequality and the Nash equilibrium theory, and the optimal decision making conditions of the manufacturers and rental platform operators are derived. Combined with the Euler algorithm design procedure and numerical examples, the influences of the digital detection technology level, big data marketing cost coefficient and cost sharing ratio on the equilibrium state are analyzed. The results show that the input of digital detection technology leads to the increase in profits of each participant in the rental platform service supply chain network and promotes a more coordinated development of the supply chain. When the rental platforms implement big data marketing, the manufacturers share the cost, which can continuously improve the profits of both partners and make the cooperation more stable and efficient.

Carbon Reduction Subsidy, Remanufacturing Subsidy or Consumer Recycling Subsidy? A Low-Carbon Closed-Loop Supply Chain Network Operation Decision

To promote carbon emission reduction and resource reuse, this study is devoted to studying the impact of government subsidy policies on the operation decision of a low-carbon closed-loop supply chain system. In the production stage, governments can use carbon reduction subsidies and remanufacturing subsidies to reduce the green behavior costs of manufacturers; in the recycling stage, governments can use consumer recycling subsidies to increase the recycling willingness of consumers. In this study, we introduce these three subsidy policies into the target function of the subsidized members. Using the Nash non-cooperative game and variational inequality, we developed a low-carbon supply chain network equilibrium model to examine the impact of subsidy policies on the system operation decision. The results show that, under the three subsidy policies, raising the subsidy level can help to improve the recycling rate, promote the reduction in carbon emissions and improve the profits of retailers; however, manufacturers’ incomes increase only when the carbon reduction subsidy level is below a certain threshold. Notably, under the coexistence of three subsidy policies, the carbon reduction subsidy policy has a more significant impact on the system. Finally, the numerical results show that, when the subsidy level is higher than six, although the increase in carbon reduction subsidy level leads to a decrease in the profits of manufacturers, this policy has the best contribution to the environmental benefits of the system. Our results can serve as guidelines for governments when designing the optimal subsidy programs to achieve the ultimate goal of establishing an environmentally friendly supply chain network system.

A new Tseng method for supply chain network equilibrium model.

To solve the equilibrium problem of the supply chain network, a new subgradient extragradient method is introduced. The proposal achieves adaptive parameter selection, and supports a one-step subgradient projection operator, which can theoretically reduce the computational complexity of the algorithm. The introduction of subgradient projection operators makes the calculation of algorithms easier, and transforms the projection difficulty problem into how to find suitable sub-differential function problems. The given convergence proof further shows the advantages of the proposed algorithm. Finally, the presented algorithm is operated to a concrete supply chain network model. The comparisons show the proposed algorithm is better than other methods in term of CPU running time and iteration steps.

A complementarity model for a supply chain network equilibrium problem with electronic commerce

In this paper, we develop a competitive supply chain network equilibrium model with multiple products, in which electronic commerce is considered. After analysing equilibrium conditions of the manufactures, retailers, and demand markets, and giving economic interpretations, equilibrium conditions of the supply chain network formulated as an equivalent complementarity model are established. In addition, a modified subgradient extragradient algorithm is proposed to find the solution of the complementarity problem, and the convergence of the proposed algorithm is proved. We also give some numerical examples to demonstrate the efficiency of the given model and algorithm.

Chance-constrained approach for decentralized supply chain network under uncertain cost

<abstract><p>A decentralized supply chain network under uncertain cost is studied to obtain the optimal decisions of the enterprises in a situation in which the cost is uncertain. The supply chain network members adopt a chance-constrained approach to make decisions. The second-order cone-constrained variational inequality problem is used to construct the chance-constrained supply chain network equilibrium model. Then, the existence and uniqueness properties of the proposed equilibrium model are discussed under some mild assumptions. For the discontinuous functions in the feasible region of the model, the proposed model is converted to a second-order cone complementarity problem. The numerical results show that the uncertainty and risk attitude of retailers and manufacturers have different effects on supply chain network members. When the risk attitude is high, a small change in the risk attitude will significantly change all decisions of supply chain members. If the supply chain member is affected by the uncertainty positively, its profit will increase as its risk attitude increases. Moreover, it is appropriate to adopt a chance-constrained approach when the supply chain members can estimate the distributions of the competitor's strategies.</p></abstract>

Supply chain network equilibrium considering coordination between after-sale service and product quality

In a highly integrated supply chain system, the trade-off between after-sale service and product quality becomes an important consideration in establishing and maintaining a sustainable supply chain partnership. To this end, we proposed an underlying decentralized supply chain network (DSCN) equilibrium model for service-quality coordination under capacity constraints and demand uncertainty. The proposed DSCN model is compared with centralized supply chain network (CSCN). Then, the buyback contract is introduced to coordinate the DSCN. After the implementation of supply chain network equilibrium (SCNE) in numerical examples, we obtain the equilibrium solution of the proposed model. The result shows that, compared with DSCN, CSCN does not always provide better service or product quality. Moreover, by introducing the buyback contract, the equilibrium profits of DSCN are improved, so that the Pareto improvement occurs. Our findings can provide useful analytical frameworks and implications for how to coordinate after-sale service, product quality, selling price, and product ordering decisions in the supply chain network simultaneously.

Platform Service Supply Chain Network Equilibrium Model with Data Empowerment

With the rapid development of information and communication technology, data empowerment has become an important way for platform service supply chain (PSSC) members to obtain a competitive advantage. Based on the three-level PSSC network structure composed of service providers, platform operators, and demand markets, this paper assumes that platform operators empower service providers to improve service quality, and PSSC members invest in data security risk control. Then, using variational inequality and equilibrium theory, a supply chain network equilibrium model considering data empowerment is constructed, and the equilibrium conditions of the whole network are obtained. Based on numerical examples, this paper analyzes the impact of the sensitivity of the demand market to service quality, the relative importance of service providers’ service quality improvement level, the data empowerment cost of PSSC members, and the data security risk control investment of PSSC members on the equilibrium state of the supply chain network. The results show the following: because the service quality is produced by the cooperation between service providers and platform operators, platform operators may have free-riding behavior and are only willing to invest a fixed data empowerment cost to ensure the essential service quality; data security risk control investment is an important factor affecting service sales; and when supply chain network members reduce data security risk control investment, consumers’ willingness to pay for services will be reduced, resulting in a decline in the overall profit of the supply chain network.

Impact of Interest Rate Risk on Supply Chain Network under Bank Credit and Trade Credit Financing

The purpose of this study is to propose a methodology that reflects the impact of interest rate risk on firms in supply chain network under bank financing and trade credit and further describe how trade credit improves the impact of interest rate risk on supply chain network through a financial flow equilibrium. A mean-variance framework and a network equilibrium analysis are integrated to provide a modeling framework. The model allows for the investigation of how bank credit financing (BCF) and trade credit financing (TCF) affect the payment strategy and financial flow of interconnected firms in supply chain networks and how they are affected by interest rate risks. The optimal behavior of manufacturers and retailers is described through variational inequality. We construct a supply chain network equilibrium model and derive qualitative properties of the solution and the function that becomes assimilated to the variational inequality problem. Additionally, variational inequality is solved using the modified projection method. This study extends the research on the impact of interest rate risk on the decision in supply chain network of firms. While other studies focus on the game between banks and firms, only a few authors have made attempts to examine the game between one manufacturer and one retailer in supply chain. An effective trade credit strategy is obtained by balancing cash and credit transactions. Through the case study, we learn how to balance the capital flow effectively to improve the negative impact of interest rate risk on supply chain.

Remanufacturing Policies Options for a Closed-Loop Supply Chain Network

Due to the need for resource utilization and environmental protection, remanufacturing is used as an effective means to achieve a circular economy. To focus on the production and sales of new products, manufacturers outsource the remanufacturing of used products to remanufacturers. Aiming at helping manufacturers to choose between self-remanufacturing and outsourcing remanufacturing policies, a closed-loop supply chain network equilibrium model considering the remanufacturing policy options is established. The equilibrium decision-making is obtained by using the variational inequality method. Furthermore, the criteria for manufacturers to choose between the two remanufacturing policies based on different factors such as recovery rates of the used products, remanufacturing costs, and environmental impact parameters, are given. Numerical examples show the following results: (1) When compared with self-remanufacturing policy, outsourcing remanufacturing policy can save resources, increase the sales of products, and have a smaller environmental impact. (2) When the recycling rate of used products is low, choosing an outsourcing remanufacturing policy can increase the sales of products. When the recycling rate is high, choosing a self-remanufacturing policy can get more profits. (3) When the costs of a self-remanufacturing policy and an outsource-remanufacturing policy are quite different, choosing the outsourcing remanufacturing policy can save resources and protect the environment.

Carbon reduction decisions under progressive carbon tax regulations: A new dual-channel supply chain network equilibrium model

Since the production process in manufacturing industry is one of the main sources of carbon emissions, most governments have enacted relevant carbon policies to encourage manufacturers to invest in green production technology and reduce carbon emissions. However, the effectiveness of the carbon policy deserves further investigation because the manufacturers focus more on economic profits in actual operations. For this purpose, this paper proposes a dual-channel supply chain network (DCSCN) equilibrium model based on variational inequality theory to examine progressive carbon tax mechanism design of the government and its impacts on the production/pricing and abatement level decisions of the manufacturers in the DCSCN. In addition, this paper also examines the influences of the online channel introduction on supply chain network equilibrium decisions, carbon emissions and profits. We employ the modified projection and contraction algorithm to obtain the numerical solutions for several examples, and analyze the impacts of the key parameters on the equilibrium decisions and derive several managerial insights. The results show that if the government sets the high-level carbon tax and the cut-off value in progressive carbon tax policy appropriately, it can induce the manufacturers to improve abatement level actively; meanwhile the profit maximization goal of the manufacturer and the whole DCSCN can be consistent with the government's low-carbon emission target. Moreover, the introduction of online channel may depress the economic activities and lead to profit loss for the supply chain network but contributes to reducing the carbon emissions under progressive carbon tax policy. The conclusions may be useful for reference in the study of the low-carbon supply chain and the design of carbon emission reduction policy for government.

Strategies for building a complete and efficient online shopping supply chain system

In the electricity business enterprise different sales model, the different consumer online shopping behavior will result in different market demand, the different market demand for the influence of e-commerce supply chain system is different also, therefore, it is necessary for e-commerce enterprises to determine the network equilibrium conditions of the whole e-commerce supply chain according to the online shopping behaviors of consumers in different market demands under different sales modes, so as to improve the operational efficiency of e-commerce supply chain. Through the analysis of supply chain network, online shopping, consumer behavior and its influencing factors in four levels of supplier, e-retail, express business and market demand, this paper reviews and summarizes the supply chain network equilibrium model and its application research status, and analyzes the equilibrium problem of online supply chain system under different conditions from the perspective of consumer online shopping behavior research. Relevant strategies are proposed.

A Product Service Supply Chain Network Equilibrium Model considering Capacity Constraints

With the further development of manufacturing servitization, the supply chain established by enterprises has gradually evolved into a product service supply chain. The introduction of service flow has made supply chain management more complicated. In this paper, we build a product service supply chain network composed of raw material suppliers, service providers, manufacturing integrators, and customers. The equilibrium model for decision-makers at all levels is established by variational inequality. In particular, we emphasize the impact of product and service capacity constraints and changes in the product service integration ratio on network equilibrium. The results show that, while capacity constraints on production tend to stabilize and unify the market price, service-related capacity constraints polarize the customer pay price. That is to say, product capability constraints limit the quality of product service systems, while service capability constraints limit the types of product service systems. Furthermore, the introduction of service flow and integration with products creates a more closely networked relationship between the upper and lower layers of the product service supply chain, and an increase in the service proportion will increase the network equilibrium profit.

Dual-channel environmental hotel supply chain network equilibrium decision under altruism preference and demand uncertainty

To study the influence of the altruistic preference of decision makers and the low-carbon preference of consumers on decision-making behaviour in all layers of a dual-channel environmental hotel supply chain, this paper constructs a dual-channel supply chain network equilibrium model comprising hotels, online travel agent(OTA) platforms and demand markets. Under the condition of uncertain demand from the merchant and agency mode perspectives, variational inequalities are used to describe the altruistic preference of each layer of agents and their mutual influence and the low-carbon preference of consumers. Then the equilibrium conditions of the system are obtained and the optimal decision-making results are obtained by using the improved projection gradient algorithm. Finally, the effectiveness of the model is verified through a numerical case analysis. It is found that the increase effort in carbon emission reduction has a significant impact on the profits of hotels and online travel agency platforms. The altruistic preferences of decision makers have different impacts on the supply chain under the merchant mode and the agency mode. When the altruistic preference for the OTA platform increases, the OTA platform model is more profitable than the merchant model. The deeper the degree of hotel altruism preference is, the greater the intra-hotel cooperation, which may lead to the rise of an Environmental Tourism Products and Service(ETP&S) volume in the direct selling market of hotels and make the profit of the OTA platform decrease slightly; however, the profit under the OTA platform is still higher than that under the merchant mode.

Equilibrium in supply chain network with competition and service level between channels considering consumers' channel preferences

This paper considers a dual-channel supply chain network consisting of multiple competing manufacturers, multiple competing retailers and multiple demand markets. Each manufacturer produces and distributes his products via direct e-commerce channel along with traditional physical channel. The manufacturers also provide services for the consumers in both channels, while the retailers only offer offline services to the consumers. On this basis, a dual-channel supply chain network equilibrium model with pricing and service decisions are established based on variational inequality theory. Nash equilibrium solutions are obtained by modified projection and contraction method. Combined with numerical examples, we analyze the impact of three critical factors on the equilibrium states and profits. Some interesting managerial insights are derived. We find that the profits of the manufacturers decrease (increase) in the raw material conversion ratio under single channel case (dual-channel case), while the increase of the raw material conversion ratio always benefits the retailers and the whole dual-channel supply chain network; the service level in each channel is positively correlated with its transaction volume. There are significant inconsistencies among the best combinations of cross-channel price coefficients between two channels for the manufacturers, the retailers and the whole dual-channel supply chain network. The same equilibrium decision (service level, price) or profit may exhibit the opposite changing trend with respect to cross-channel price coefficients under two cases of active e-commerce transaction and inactive e-commerce transaction. When the introduction of e-commerce channel can bring more profits for the whole dual-channel supply chain network, the manufacturers should provide reasonable allocation schemes of profit increment for the retailers to satisfy their participation constraints.

Closed-Loop Supply Chain Network Equilibrium Model with Subsidy on Green Supply Chain Technology Investment

The green supply chain (GSC) can effectively reduce the waste of resources and avoid environmental pollution. For a closed-loop supply chain network consisting of multiple manufacturers, multiple retailers, and multiple consumer and recycling markets, we assume that retailers are responsible for the recycling of used products, manufacturers use raw materials to produce new products and recycled products for remanufacturing, and government departments subsidize all manufacturers and retailers for GSC technology investment. Then, the equilibrium conditions of manufacturers, retailers, demand markets, and recycling markets are obtained by using the variational inequality method, complementarity theorem, and Nash equilibrium theory, and the variational inequality model of the closed-loop supply chain network multiphase equilibrium is established. Based on numerical simulation, the optimal technology investment decision of green supply chain under different government subsidy rates, and the influence of market structure and enterprise cost asymmetry on the equilibrium solution of supply chain network are analyzed. The results show that government subsidies can effectively promote enterprises to upgrade their level of GSC technology investment. The intensification of enterprise competition and the asymmetry of enterprise costs will affect the composition of enterprise profits and the allocation of profits between enterprises, and the former will weaken the effect of government subsidies.

Strict quotas or tariffs? Implications for product quality and consumer welfare in differentiated product supply chains

We introduce a supply chain network equilibrium model with differentiated products, in which firms compete on product quantities and quality. We then extend the model to include a strict quota or tariff. We establish the equivalence between the model with a strict quota and that with a tariff, when the quota constraint is tight, and the tariff corresponds to the equilibrium Lagrange multiplier associated with the constraint for the former model. Numerical examples reveal that although firms may benefit from the imposition of a quota or tariff, the welfare of consumers in the country imposing the instrument declines.