Journal of Global Optimization

, Volume 67, Issue 1, pp 223–250

Supply chain performance assessment and supplier and component importance identification in a general competitive multitiered supply chain network model

Article

DOI: 10.1007/s10898-015-0371-7

Cite this article as:
Li, D. & Nagurney, A. J Glob Optim (2017) 67: 223. doi:10.1007/s10898-015-0371-7

Abstract

In this paper, we develop a multitiered competitive supply chain network game theory model, which includes the supplier tier. The firms are differentiated by brands and can produce their own components, as reflected by their capacities, and/or obtain components from one or more suppliers, who also are capacitated. The firms compete in a Cournot–Nash fashion, whereas the suppliers compete a la Bertrand since firms are sensitive to prices. All decision-makers seek to maximize their profits with consumers reflecting their preferences through the demand price functions associated with the demand markets for the firms’ products. We construct supply chain network performance measures for the full supply chain and the individual firm levels that assess the efficiency of the supply chain or firm, respectively, and also allow for the identification and ranking of the importance of suppliers as well as the components of suppliers with respect to the full supply chain or individual firm. The framework is illustrated through a series of numerical supply chain network examples.

Keywords

Supply chainsNetworksSuppliersGame theoryPerformance assessmentImportance indicators

Copyright information

© Springer Science+Business Media New York 2015

Authors and Affiliations

  1. 1.Department of Management and Marketing, College of BusinessArkansas State UniversityState UniversityUSA
  2. 2.Department of Operations and Information Management, Isenberg School of ManagementUniversity of MassachusettsAmherstUSA