On the relationship between supply chain and transportation network equilibria: A supernetwork equivalence with computations

On the relationship between supply chain and transportation network equilibria: A supernetwork equivalence with computations

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Article ID: iaor20072154
Country: United Kingdom
Volume: 42
Issue: 4
Start Page Number: 293
End Page Number: 316
Publication Date: Jul 2006
Journal: Transportation Research. Part E, Logistics and Transportation Review
Authors:
Keywords: networks, supply & supply chains
Abstract:

In this paper, we consider the relationship between supply chain network equilibrium and transportation network equilibrium. We demonstrate that a supply chain network equilibrium model introduced earlier can be reformulated as a transportation network equilibrium model with elastic demands through a supernetwork reformulation of the former. This equivalence allows us to transfer the wealth of methodological tools developed for transportation network equilibrium modeling, analysis, and computation to the study of supply chain networks. To illustrate the power of the results, we then apply an algorithm developed for the solution of transportation network equilibrium problems with elastic demands to compute the product shipments and demand market prices in several numerical supply chain network examples taken from the existing literature.

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