Tiers Of Decision-makers Research Articles

A variational approach for supply chain networks with environmental interests

Nowadays, the supply chain networks, consisting of different tiers of decision-makers, provide an effective framework for the production, the distribution, and the consumption of goods. In this paper we propose a supply chain network optimization model where manufacturers, retailers and consumers in the demand markets have a degree of interest in environmental sustainability. The manufacturers can improve their energy level (assumed as variables), aim to minimize their environmental emissions (for production and transport) and can also establish the amount of quantity of the production waste to dispose in a eco-sustainable way. The retailers, who are also profit-maximizers, aim to minimize their environmental emissions (which depend on the chosen shipping methods). The consumers at demand markets make their own choices according to the prices and to their degree of aversion to the environmental emissions. We describe the behavior of each decision-maker and we present the mathematical model for each of them, deriving the variational inequality problems. Furthermore, we derive a unique variational inequality formulation for the entire network for whose solution an existence and uniqueness result is obtained. Finally, we illustrate some numerical simulations that highlight how the use of UAVs and the presence of waste sorting centers in the supply chain reduce environmental emissions and related costs.

Equilibrium Conditions of a Logistics Service Supply Chain with a New Smoothing Algorithm

In this paper, we develop a logistics service supply chain network equilibrium model in which four tiers of decision makers (logistics service subcontractors (LSS), logistics service providers (LSP), logistics services integrators (LSI) and logistics service demand sides (LSD)) seek to determine their respective optimal conditions, with the LSI holding a leading position. We model the optimizing behavior of decision-makers, with the LSI being multicriteria decision-makers which are concerned with both profit maximization and risk minimization. We derive the equilibrium conditions and establish the finite-dimensional variational inequality (VI) formulation. A new smoothing self-adaptive L-M algorithm is established to solve this problems. Finally, we illustrate the effectiveness and feasibility of the model by an example.

Multiperiod supply chain network equilibrium model with electronic commerce and multicriteria decision-making

In this paper, we develop a supply chain network equilibrium model in which electronic commerce in the presence of both B2B (business-to-business) and B2C (business-to-consumer) transactions, multiperiod decision-making and multicriteria decision-making are integrated. The model consists of three tiers of decision-makers (manufacturers, retailers and consumers at demand markets) who compete within a tier but may cooperate between tiers. Both manufacturers and retailers are concerned with maximization of profit as well as minimization of risk, whereas consumers take both the prices charged by manufacturers and retailers, along with the corresponding costs of transacting, in making their consumption decisions. Increasing relationship levels are assumed to decrease costs of transacting as well as risk costs. Establishing and maintaining these relationship levels incur some costs that have to be borne by the various decision-makers. We study the interaction among different tiers of decision-makers, describe their multicriteria decision-making behavior and derive the optimality conditions as well as the equilibrium conditions which are then shown to satisfy a finite-dimensional variational inequality problem. We then establish qualitative properties of the equilibrium model under some reasonable assumptions and illustrate the model with several numerical examples.

Multi-period supply chain network equilibrium with capacity constraints and purchasing strategies

In this paper, we propose a capacitated supply chain network equilibrium model in which three tiers of decision makers (manufacturers, retailers and consumers at demand markets) seek to determine their optimal plans over a multi-period planning horizon. Unlike other studies in the extent literature, we use a new concept of purchasing strategy to model the strategic behavior of retailers and consumers at demand markets in a capacitated supply chain network. A purchasing strategy denotes an ordered set of manufacturers (or retailers) from which each retailer (or each consumer at a demand market) prefers to purchase a product. We show that the equilibrium conditions governing the multi-period capacitated supply chain network equilibrium problem can be formulated as a variational inequality in terms of strategies and strategic flows. To find a solution to this variational inequality, we propose an iterative algorithm that generates strategies for retailers and consumers as required by solving a dynamic program. We prove that the solution set is nonempty and provide a numerical example to illustrate the validity of our model.

Evolutionary variational inequalities and applications to complex dynamic multi-level models

In this paper we consider a supply chain network model with three tiers of decision-makers (manufacturers, retailers, and consumers) in the case when prices and shipments are evolving on time. Moreover, we assume that excesses of production and excesses of demand of the commodity are present. For such a framework we furnish, using the infinite dimensional duality theory, the equilibrium conditions for the representatives of each tier of the supernetwork, the time-dependent variational formulation governing the complete supply chain supernetwork, and we provide some existence theorems and a numerical example.

Global supply chain network dynamics with multicriteria decision-making under risk and uncertainty

Abstract In this paper, we consider the dynamics of a global supply chain network economy in the presence of risk and uncertainty in which distinct speeds of adjustment are included. We assume three tiers of decision-makers: manufacturers, distributors, and retailers, who acquire the product in order to satisfy the demand at the demand markets. The manufacturers, distributors, and retailers may be based in the same or in different countries and may transact in different currencies. We allow for electronic transactions in the form of electronic commerce between the manufacturers and the retailers as well as between the distributors and the retailers since the retailers may be physical or virtual. In addition, supply-side risk and demand-side risk are handled in our formulation with the former being expressed as a multicriteria decision-making problem for each manufacturer and distributor (with distinct weights associated with the criteria) and the latter being handled with the use of uncertain demands. The proposed framework allows for the modeling and theoretical analysis of such global supply chain networks, which involve competition within a tier of decision-makers but cooperation between tiers. Numerical examples are provided for illustrative purposes.

Supply chain networks, electronic commerce, and supply side and demand side risk

In this paper, we develop a supply chain network model in which both physical and electronic transactions are allowed and in which supply side risk as well as demand side risk are included in the formulation. The model consists of three tiers of decision-makers: the manufacturers, the distributors, and the retailers, with the demands associated with the retail outlets being random. We model the optimizing behavior of the various decision-makers, with the manufacturers and the distributors being multicriteria decision-makers and concerned with both profit maximization and risk minimization. We derive the equilibrium conditions and establish the finite-dimensional variational inequality formulation. We provide qualitative properties of the equilibrium pattern in terms of existence and uniqueness results and also establish conditions under which the proposed computational procedure is guaranteed to converge. We illustrate the supply chain network model through several numerical examples for which the equilibrium prices and product shipments are computed. This is the first multitiered supply chain network equilibrium model with electronic commerce and with supply side and demand side risk for which modeling, qualitative analysis, and computational results have been obtained.

Multitiered Supply Chain Networks: Multicriteria Decision—Making Under Uncertainty

In this paper, we present a supply chain network model with multiple tiers of decision-makers, consisting, respectively, of manufacturers, distributors, and retailers, who can compete within a tier but may cooperate between tiers. We consider multicriteria decision-making for both the manufacturers and the distributors whereas the retailers are subject to decision-making under uncertainty since the demands associated with the product are random. We derive the optimality conditions for the decision-makers, establish the equilibrium conditions, and derive the variational inequality formulation. We then utilize the variational inequality formulation to provide both qualitative properties of the equilibrium product shipment, service level, and price pattern and to propose a computational procedure, along with convergence results. This is the first supply chain network model to capture both multicriteria decision-making and decision-making under uncertainty in an integrated equilibrium framework.

Dynamics of international financial networks with risk management

In this paper, we develop an international financialnetwork model in which the sources of funds and the intermediaries are multicriteria decision-makers and are concerned with both net revenue maximization and risk minimization. The model allows for both physical as well as electronic transactions and considers three tiers of decision-makers who may be located in distinct countries and may conduct their transactions in different currencies. We describe the behaviour of the various decision-makers, along with their optimality conditions, and derive the variational inequality formulation of the governing equilibrium conditions. We then propose a dynamic adjustment process which yields the evolution of the financial flows and prices and demonstrate that it can be formulated as a projected dynamical system. We also provide qualitative properties including stability analysis results. Finally, we discuss a discrete-time algorithm which can be applied to track the dynamic trajectories and yields the equilibrium financial flows and prices. We illustrate both the modelling framework as well as the computational procedure with several numerical international financial network examples.

Statics and Dynamics of Global Supply Chain Networks with Environmental Decision-Making

In this paper, we develop static and dynamic models of global supply chains as networks with three tiers of decision-makers: manufacturers, retailers, and consumers associated with the demand markets, who compete within a tier but cooperate between tiers. The decision-makers may be based in the same or in different countries, may transact in different currencies, and are faced with different degrees of environmental concern. Moreover, we allow for electronic transactions in the form of electronic commerce between the decisionmakers. The proposed supernetwork framework formalizes the modeling and theoretical analysis of such global supply chains, and also enables the dynamic tracking of the evolution of the associated prices and product transactions (as well as the emissions) to the equilibrium state. Moreover, it measures the impacts on the environment associated with the behaviors of the decision-makers. Finally, we propose a discrete-time algorithm which allows for the discretization of the continuous time trajectories and which results in closed form expressions at each iteration.

International financial networks with intermediation: modeling, analysis, and computations

In this paper, we develop a framework for the modeling, analysis, and computation of solutions to international financial networks with intermediation. We consider three tiers of decision-makers consisting of: source agents in different countries, financial intermediaries, and consumers associated with the demand markets for different products in distinct currencies and countries. We model the behavior of the decision-makers, derive the equilibrium conditions, and establish the variational inequality formulation. We then utilize the variational inequality formulation to obtain qualitative properties of the equilibrium financial flow and price pattern as well as to propose an algorithm along with convergence results. Numerical examples are presented to illustrate both the model and the computational procedure. This research extends the recent results surrounding the modeling of financial networks with intermediation to the international dimension.

Global Supply Chain Networks and Risk Management

In this paper, we develop a global supply chain network model in which both physical and electronic transactions are allowed and in which supply-side risk as well as demand-side risk are included in the formulation. The model consists of three tiers of decision-makers: the manufacturers, the distributors, and the retailers who may be located in the same or in different countries and may conduct their transactions in distinct currencies. We model the optimizing behavior of the various decision-makers, with the manufacturers and the distributors being multicriteria decision-makers, and concerned with both profit maximization and risk minimization. The retailers, in turn, are faced with random demands for the product. We derive the governing equilibrium conditions and establish the finite-dimensional variational inequality formulation. We provide qualitative properties of the equilibrium product flow and price pattern in terms of existence and uniqueness results and also establish conditions under which the proposed computational procedure is guaranteed to converge. Finally, we illustrate the global supply chain network model and the computational procedure through several numerical examples. This research extends the modelling, analysis, and computation of solutions to decentralized supply chain networks in the presence of electronic commerce and risk management to the global arena.

Dynamics of International Financial Networks with Risk Management

In this paper, we develop an international financial network model in which the sources of funds and the intermediaries are multicriteria decision-makers and are concerned with both net revenue maximization and risk minimization. The model allows for both physical as well as electronic transactions and considers three tiers of decision-makers who may be located in distinct countries and may conduct their transactions in different currencies. We describe the behavior of the various decision-makers, along with their optimality conditions, and derive the variational inequality formulation of the governing equilibrium conditions. We then propose a dynamic adjustment process which yields the evolution of the financial flows and prices and demonstrate that it can be formulated as a projected dynamical system. We also provide qualitative properties including stability analysis results. Finally, we discuss a discrete-time algorithm which can be applied to track the dynamic trajectories and yields the equilibrium financial flows and prices. We illustrate both the modeling framework as well as the computational procedure with several numerical international financial network examples.

Dynamics of global supply chain supernetworks

In this paper, we develop a framework for the modelling, analysis, and computation of solutions to global supply chains. We consider three tiers of decision-makers: manufacturers, who may be located in the same or in different countries; intermediaries, in the form of retailers, who may be either physical or virtual, as in the case of electronic commerce; and consumers at the demand markets who may purchase the product in different currencies in the countries. We model the behavior of the decision-makers, derive the equilibrium conditions, and establish the variational inequality formulation. We then utilize the variational inequality formulation to obtain qualitative properties of the equilibrium product shipment and price pattern. In addition, we propose a dynamic adjustment process for the continuous time adjustment of the product flows and prices and formulate it as a projected dynamical system whose set of solutions coincides with the set of solutions to the variational inequality problem. A discrete-time algorithm is then applied to several numerical supply chain examples. This research extends the recent results surrounding the modelling of supply chains in a network equilibrium setting to the global arena.

Financial networks with electronic transactions: modelling, analysis and computations

Advances in telecommunication networks, and, in particular, the Internet have transformed the economic landscape for financial decision-making. In this paper, we focus on financial networks with electronic transactions and with different tiers of decision-makers and we develop an integrated framework for the modelling, analysis and computation of solutions to such problems. Specifically, we consider an economy consisting of three types of decision-makers: those with sources of funds; intermediary ones, and consumers associated with the financial products at the demand markets. Those with sources of funds can transact with the intermediaries either physically or electronically as well as directly in an electronic manner with the consumers. The intermediaries, in turn, can also transact with the consumers either in a physical or an electronic fashion. We address the behaviour of the decision-makers, identify the network structure of the problem, derive the equilibrium conditions, and establish the variational inequality formulation. In addition, we propose a continuous time adjustment process for the study of the disequilibrium dynamics and prove that the set of stationary points of the resulting projected dynamical system coincides with the set of solutions of the variational inequality. We then utilize variational inequality theory to derive qualitative properties of the equilibrium price and financial flow pattern. Finally, we apply an algorithm for the determination of equilibrium prices and financial flows in several examples.