Strategic decision of competing supply chain network with multi-criteria decision making
Qinghong Zhang1, Kai Kang2, Ming Li2
COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(12C) 498-503
1School of Information Science and Technology, Shijiazhuang Tiedao university, Shijiazhuang 050043, Hebei, China
2School of Economics and Management, Hebei University of Technology, Tianjin 300401, China
In this paper, we propose a rigorous modeling and analytical framework for the design of decentralized supply chain network with a rival chain present, which involved in the production, storage, and distribution of a substitutable product to markets. The different tiers of firms, consisting of manufacturers, distributors, and retailers are assumed to be multi-criteria decision makers who seek to not only maximize the total profits, but also to minimize the emissions quantities with an appropriate weight. Qualitative properties of the equilibrium solution to the infinite-dimensional variation inequality formulation are provided. In particular, the existence and uniqueness of the results are derived. The algorithm is provided and applied to compute solutions to numerical examples in order to illustrate our approach.