A closed-loop Supply Chain Network Equilibrium Model with Fuzzy Demand under Production Capacity Constraints and Price Rigidities |
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Authors: | WU Hai-xiang HU Jin-song |
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Institution: | Department of Management Science and Engineering, Qingdao University,Qingdao Shandong,266071,China |
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Abstract: | A closed-loop supply chain network equilibrium problem is examined,which consists of mutual competitive manufacturers with production capacity constraints and retailers with fuzzy market demands,mutual competitive collectors as well as a binding price ceiling of the commodities.By utilizing the credibility measure of fuzzy event,variational inequality and Lagrange dual theory,the optimum behaviors of manufactures,retailers,collectors and consumers are described.Therefore,the supply chain network equilibrium model is established.Numerical examples were given to illustrate the impact of production capacity constraints and price ceiling on the network equilibrium pattern.The results show that the shortage of commodities in consumer market will be more serious,the wholesale price of product and purchase price of waste products rise,the profits of retailers decrease,the profits of manufacturers and collectors increase as the government gradually reduce the binding price ceiling on competitive markets,and the trend will be more obvious in the existence of production capacity constraints at same time. |
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Keywords: | Closed-loop supply chain network Nash equilibrium Variational inequality Credibility theory Fuzzy demand |
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