A non-smooth optimization model for a two-tiered supply chain network |
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Authors: | Suh-Wen Chiou |
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Affiliation: | Department of Information Management, National Dong Hwa University, 1, Sec. 2, Da Hsueh Road, Shou-Feng, Hualien 97401, Taiwan |
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Abstract: | A non-smooth optimization model is established for a two-tiered supply chain network where manufacturers are at the upper level and consumers are at the lower level. A supply chain equilibrium model is considered at the lower level while policy interventions are taken into account at the upper level. A mathematical program with equilibrium constraints (MPEC) is established for the two-tiered supply chain network. Numerical illustrations are carried out using a 9-node network and preliminary results are reported. |
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Keywords: | Supply chain network Equilibrium Non-smooth approach Subgradients Sensitivity analysis |
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