Global supply chain network dynamics with multicriteria decision-making under risk and uncertainty (original) (raw)
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Multitiered Supply Chain Networks: Multicriteria Decision - Making Under Uncertainty
Annals of Operations Research, 2005
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.
Supply chain networks, electronic commerce, and supply side and demand side risk
European Journal of Operational Research, 2005
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 decisionmakers, 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.
Supply Chain Networks with Multicriteria Decision-Makers
2002
This paper presents a theoretical framework for supply chain network modeling, analysis, and computation in the presence of competition, in which all the decision-makers, who are located at distinct tiers of the network, are multicriteria decision-makers. In particular, in this framework, transportation time and transportation cost are explicit criteria and these can depend on the service level provided. The optimality conditions of the different tiers of decision-makers, consisting of manufacturers, retailers, and consumers are derived, as well as the equilibrium conditions of the integrated model. The variational inequality formulation of the governing equilibrium conditions is then utilized to obtain qualitative properties as well as a computational procedure for the determination of the equilibrium product shipments between the tiers of the network, the prices, as well as the service levels.
Global Supply Chain Networks and Risk Management: A Multi-Agent Framework
Multiagent based Supply Chain 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/agents: 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 1 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 illustrates the modeling, analysis, and computation of solutions to decentralized supply chain networks with multiple agents in the presence of electronic commerce and risk management in the global arena. Moreover, it highlights and applies some of the theoretical tools that are now available for such multi-agent problems.
Mathematical Problems in Engineering, 2011
An integrated equilibrium model for tactical decisions in network design is developed. We consider a decentralized supply chain network operating in markets under uncertain demands when there is a rival decentralized chain. The primary assumption is that two chains provide partial substitutable products to the markets, and markets' demands are affected by tactical decisions such as price, service level, and advertising expenditure. Each chain consists of one riskaverse manufacturer and a set of risk-averse retailers. The strategic decisions are frequently taking precedence over tactical ones. Therefore, we first find equilibrium of tactical decisions for each possible scenario of supply chain network. Afterwards, we find optimal distribution network of the new supply chain by the scenario evaluation method. Numerical example, including sensitivity analysis will illustrate how the conservative behaviors of chains' members affect expected demand, profit, and utility of each distribution scenario.
Global Supply Chain Management Under Market Uncertainty
Socio World-Social Research & Behavioral Sciences, 2021
This article proposes to consider global supply chain management as a process of management and coordination of the entire business process chain of supply actors, each of which has its priorities and goals in the process of ensuring fast and cost-effective delivery of goods or/and services to consumers, fair distribution of risks, costs and benefits among all participants in the chain. It is formulated that the main idea of the enterprises' transition to a new global level should be to build global logistics and the corresponding global supply chain management. The analysis of scientific sources allowed the author to offer a generalized definition of the supply chain as a linearly ordered system of legal entities and individuals (economic units), which distinguishes suppliers of initial and final levels, manufacturers, distributors of first and final levels, companies involved and performing operations in the process of moving material and related flows from one logistics syste...
A stochastic model for risk management in global supply chain networks
European Journal of Operational Research, 2007
With the increasing emphasis on supply chain vulnerabilities, effective mathematical tools for analyzing and understanding appropriate supply chain risk management are now attracting much attention. This paper presents a stochastic model of the multi-stage global supply chain network problem, incorporating a set of related risks, namely, supply, demand, exchange, and disruption. We provide a new solution methodology using the Moreau-Yosida regularization, and design an algorithm for treating the multi-stage global supply chain network problem with profit maximization and risk minimization objectives.
A three-echelon supply chain with asymmetric information under uncertainty
Journal of Ambient Intelligence and Humanized Computing, 2018
This paper investigates a three-echelon supply chain problem in which multiple suppliers, a single manufacturer and a single retailer are participants. The manufacturer selects suppliers and estimates quantity of defective components purchased from the suppliers, but the quality information is unavailable for the manufacture due to asymmetric information. In addition, customers' demands could not be predicated accurately either. Under this circumstance, quantity of defective components and demands of customers are all characterized as uncertain variables according to real trade. Based on uncertainty theory, three models under different criteria such as expected value criterion, chance-constrained one and measure-chance one are constructed for the problem and corresponding solution approach is proposed as well under uncertain environment. Finally, some numerical examples are given to show the applications of the problem.
Multi-Criteria Supply Chain Network Design Under Uncertainty
2012
This thesis contributes to the debate on how uncertainty and concepts of sustainable development can be put into modern supply chain network and focuses on issues associated with the design of multi-criteria supply chain network under uncertainty. First, we study the literature review , which is a review of the current state of the art of Supply Chain Network Design approaches and resolution methods. Second, we propose a new methodology for multi-criteria Supply Chain Network Design (SCND) as well as its application to real Supply Chain Network (SCN), in order to satisfy the customers demand and respect the environmental, social, legislative, and economical requirements. The methodology consists of two different steps. In the first step, we use Geographic Information System (GIS) and Analytic Hierarchy Process (AHP) to buildthe model. Then, in the second step, we establish the optimal supply chain network using Mixed Integer Linear Programming model (MILP). Third, we extend the MILP...