Supply chain network competition in time-sensitive markets

We develop a game theory model for supply chain network competition in time-sensitive markets in which consumers respond to the average delivery time associated with the various firms’ products. The firms’ behavior is captured, along with the supply chain network topologies, with the governing equilibrium concept being that of Nash equilibrium. We derive the variational inequality formulation of the equilibrium conditions and provide illustrative examples. We also identify special cases for distinct applications. An algorithm is proposed, and the framework further illustrated through a case study in which we explore varying sensitivities to the average time delivery with interesting results.

[1]  G. Hult,et al.  Best value supply chains: A key competitive weapon for the 21st century , 2008 .

[2]  Anna Nagurney,et al.  Competitive Food Supply Chain Networks with Application to Fresh Produce , 2012, Eur. J. Oper. Res..

[3]  Anna Nagurney,et al.  Equilibria and dynamics of supply chain network competition with information asymmetry in quality and minimum quality standards , 2014, Comput. Manag. Sci..

[4]  George A. Akerlof.  The Market for “Lemons”: Quality Uncertainty and the Market Mechanism , 1970 .

[5]  A. Nagurney,et al.  A Supply Chain Network Game Theoretic Framework for Time-Based Competition with Transportation Costs and Product Differentiation , 2012 .

[6]  P. Torino.  Networks against time . Supply chain analytics for perishable products , 2022 .

[7]  Anna Nagurney,et al.  Supply chain network sustainability under competition and frequencies of activities from production to distribution , 2013, Comput. Manag. Sci..

[8]  D. Kinderlehrer,et al.  An introduction to variational inequalities and their applications , 1980 .

[9]  Anna Nagurney,et al.  Competitive Food Supply Chain Networks with Application to Fresh Produce , 2012 .

[10]  A. Nagurney,et al.  Equilibria and Dynamics of Supply Chain Network Competition with Information Asymmetry in Quality and Minimum Quality Standards , 2014 .

[11]  Jonas Flodén,et al.  Factors influencing transport buyer’s choice of transport service – A European literature review , 2010 .

[12]  A. Nagurney.  Supply Chain Network Economics: Dynamics of Prices, Flows and Profits , 2006 .

[13]  Jing-Sheng Song,et al.  Price, delivery time guarantees and capacity selection , 1998, Eur. J. Oper. Res..

[14]  Linda Hutchison,et al.  Supply Chain Management: A Recommended Performance Measurement Scorecard , 1999 .

[15]  Anna Nagurney,et al.  Sustainable supply chain network design: a multicriteria perspective , 2010 .

[16]  Peter Dapiran.  Benetton – Global Logistics in Action , 1992 .

[17]  Lauri Ojala,et al.  Trade Logistics in the Global Economy: The Logistics Performance Index and Its Indicators , 2016 .

[18]  Anna Nagurney,et al.  Supply chain network design under profit maximization and oligopolistic competition , 2010 .

[19]  J. Nash,et al.  NON-COOPERATIVE GAMES , 1951, Classics in Game Theory.

[20]  Jason A. Winfree,et al.  Seasonal Oligopoly Power in the D'Anjou Pear Industry , 2004 .

[21]  Kut C. So,et al.  Price and Time Competition for Service Delivery , 2000, Manuf. Serv. Oper. Manag..

[22]  J. Harrigan,et al.  Distance, time, and specialization : Lean retailing in general equilibrium , 2005 .

[23]  A. Nagurney,et al.  Sustainable Fashion Supply Chain Management Under Oligopolistic Competition and Brand Differentiation , 2011 .

[24]  Tamer Boyaci,et al.  The Impact of Capacity Costs on Product Differentiation in Delivery Time, Delivery Reliability, and Price , 2006 .

[25]  A. Nagurney,et al.  Projected Dynamical Systems and Variational Inequalities with Applications , 1995 .

[26]  Martin Christopher,et al.  Logistics and supply chain management : creating value-adding networks , 2005 .

[27]  Ding Zhang.  A network economic model for supply chain versus supply chain competition , 2006 .

[28]  Joseph E. Stiglitz,et al.  THE CAUSES AND CONSEQUENCES OF THE DEPENDENCE OF QUALITY ON PRICE , 1987 .

[29]  George Jr. Stalk Hout.  Competing Against Time : How Time Based Competition Is Reshaping Global Markets , 2002 .

[30]  Harold E. Castro,et al.  Overcoming economic challenges of internet operators in low income regions through a delay tolerant architecture with mechanic backhauls , 2014, NETNOMICS: Economic Research and Electronic Networking.

[31]  Joseph D. Blackburn,et al.  Valuing time in supply chains: Establishing limits of time-based competition , 2012 .

[32]  Edward M. Bergman,et al.  Modelling preferences and stability among transport alternatives , 2002 .

[33]  Romeo Danielis,et al.  Logistics managers’ stated preferences for freight service attributes , 2005 .

[34]  A. Spence.  Monopoly, Quality, and Regulation , 1975 .

[35]  Sheu Hua Chen,et al.  An integral constrained generalized hub-and-spoke network design problem , 2008 .

[36]  George N. Rouskas,et al.  ChoiceNet: Network innovation through choice , 2013, 2013 17th International Conference on Optical Networking Design and Modeling (ONDM).

[37]  Sin-Hoon Hum,et al.  Time‐based competition: literature review and implications for modelling , 1996 .

[38]  A. Nagurney.  Network Economics: A Variational Inequality Approach , 1992 .

[39]  Benita M. Beamon,et al.  Performance measurement in humanitarian relief chains , 2008 .

[40]  Anna Nagurney,et al.  An Integrated Disaster Relief Supply Chain Network Model with Time Targets and Demand Uncertainty , 2015 .

[41]  J. Nash.  Equilibrium Points in N-Person Games. , 1950, Proceedings of the National Academy of Sciences of the United States of America.

[42]  Amir H. Masoumi,et al.  A Supply Chain Generalized Network Oligopoly Model for Pharmaceuticals under Brand Differentiation and Perishability , 2012 .

[43]  Anna Nagurney,et al.  Dynamical systems and variational inequalities , 1993, Ann. Oper. Res..

[44]  Tamer Boyaci,et al.  Product Differentiation and Capacity Cost Interaction in Time and Price Sensitive Markets , 2003, Manuf. Serv. Oper. Manag..

[45]  Amir H. Masoumi,et al.  Networks Against Time: Supply Chain Analytics for Perishable Products , 2013 .

[46]  G. Stalk.  Time-The Next Source of Competitive Advantage , 1988 .

[47]  Kerstin Westin,et al.  Miljöhänsyn vid val av godstransportör , 2000 .

[48]  David Ben-Arieh.  Network Economics: A Variational Inequality Approach , 2012 .

[49]  L. Pintelon,et al.  An online decision support system for transportation mode choice , 2003 .

[50]  M. C. Bonney,et al.  Production and Operations Management , 1991 .

[51]  R. Lopez,et al.  Oligopoly Power in the Food and Tobacco Industries , 1997 .

[52]  A. Cournot.  Researches into the Mathematical Principles of the Theory of Wealth , 1898, Forerunners of Realizable Values Accounting in Financial Reporting.

[53]  A. Nagurney,et al.  Oligopolistic and competitive behavior of spatially separated markets , 1987 .

[54]  Alex Pentland,et al.  DakNet: rethinking connectivity in developing nations , 2004, Computer.

[55]  Jiuh-Biing Sheu,et al.  An emergency logistics distribution approach for quick response to urgent relief demand in disasters , 2007 .