Multi-commodity Flow Supply Chain Network Equilibrium Model with Stochastic Choice

This article studies a three-tier competitive supply chain network equilibrium model with multi-commodity, where the production districts and brands are different. Stochastic utility theory and multinomial logit model are used to analyze consumer choice at demand market, while the influence of production districts and brands on consumer choice is stochastic. Competitive behavior of manufacturers and retailers is analyzed using the Nash equilibrium theory. The equilibrium models of each tier and the whole network are developed by the variational inequality method, along with their equilibrium conditions and economic interpretations. Finally, an algorithm is provided and used to solve a numerical example.