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: | Nagurney Anna |
Keywords: | networks, supply & supply chains |
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.