closed-loop supply chain network under oligopolistic competition with multiproducts, uncertain demands, and returns

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ID: 246831
2014
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Abstract
We develop an equilibrium model of a closed-loop supply chain (CLSC) network with multiproducts, uncertain demands, and returns. This model belongs to the context of oligopolistic firms that compete noncooperatively in a Cournot-Nash framework under a stochastic environment. To satisfy the demands, we use two different channels: manufacturing new products and remanufacturing returned products through recycling used components. Since both the demands and product returns are uncertain, we consider two types of risks: overstocking and understocking of multiproducts in the forward supply chain. Then we set up the Cournot-Nash equilibrium conditions of the CLSC network whereby we maximize every oligopolistic firm's expected profit by deciding the production quantities of each new product as well as the path flows of each product on the forward supply chain. Furthermore, we formulate the Cournot-Nash equilibrium conditions of the CLSC network as a variational inequality and prove the existence and the monotonicity of the variational inequality. Finally, numerical examples are presented to illustrate the efficiency of our model.
Reference Key
zhou2014mathematicalclosed-loop Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors ;Yan Zhou;Chi Kin Chan;Kar Hung Wong;Y. C. E. Lee
Journal journal of power sources
Year 2014
DOI
10.1155/2014/912914
URL
http://dx.doi.org/10.1155/2014/912914
Keywords
civil engineering (general)mathematics engineering (general)

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