Supply Chain Network Equilibrium Model for Perishable Products Based on Retailers’ Utility

Tu, Yiliu and Ma, Jun (2016) Supply Chain Network Equilibrium Model for Perishable Products Based on Retailers’ Utility. Wuhan International Conference On E-Bisnis.

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Abstract

We study a supply chain network equilibrium model for perishable products under the theory of discrete choice models, which comprises multiple perishable product manufacturers, distributors and retailers. Our goal is to present equilibrium outputs for different firms in this supply chain network model for perishable products based on retailers’ utility maximization. The network model is built upon transportation time function and deterioration rate to express the characteristics of perishable products, with the inclusion of the discarding costs associated with temperature control in transportation. Discrete choice model was used to elaborate retailers’ choice according to their utility maximization. Furthermore, the variational inequality formulation is used to express the equilibrium solution of supply chain network for perishable products, which determines their profit shares in competition. A numerical example is present to support this model is reliable and reasonable.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
T Technology > T Technology (General)
Divisions: Faculty of Industrial Engineering and Informatics > Information System
Depositing User: staff repository 2
Date Deposited: 02 Aug 2018 12:22
Last Modified: 02 Aug 2018 12:22
URI: http://repository.ittelkom-pwt.ac.id/id/eprint/1779

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