Research on Channel Selection of Three-level Competitive Supply Chains
Wei Ling
Yao Feng-min
Abstract:The Nash equilibrium structure of three-level competitive supply chains is addressed under the background of inter-chain competition .The problem is modeled by nonlinear programming , Nash game theory , and Stackelberg game theory , respectively .Based on these models , optimal solutions are obtained under three scenarios:fully distributed structure , fully integrated structure , and hybrid structure in which one supply chain is integrated and the other is distributed .Then, channel selection for two three-level competitive supply chains is analyzed .In this way, the Nash equilibrium structure is obtained based on three different decision criteria: the profit maximization of manufacturer , profit maximization of channel , and profit maximization of supply chain system .Results show that the Nash equilibrium structure of three-level competitive supply chains depends on the coefficient of product substitution and the decision criteria . However , when the competition intensity between supply chains is strong , no matter what decision criteria is applied , the fully distributed structure is the Nash equilibrium structure of a supply chain .
Keywords:three-level competitive supply chainsgame theorychannel selectionequilibrium analysis
Publication Date:2014-01-01
Online Publishing Date:2025-08-15(First online date of this platform, not the publication date of the document)
Pages:7( 78-84 )
Industrial Engineering Journal

Industrial Engineering Journal

PKUISTIC
ISSN:1007-7375
Year, Vol.(Issue):2014,(2)