NDLI: Supply Chain Networks and Electronic Commerce: A Theoretical Perspective

Content Provider	Springer Nature Link
Author	Nagurney, Anna Loo, Jon Dong, June Zhang, Ding
Copyright Year	2002
Abstract	In this paper, we develop a framework for the formulation, analysis, and computation of solutions to supply chain network problems in the presence of electronic commerce. Specifically, we consider manufacturers who are involved in the production of a homogeneous product and can now sell and have delivered the product not only to retailers but also directly to consumers. In addition, the manufacturers can transact with the retailers electronically. We assume that both the manufacturers and the retailers seek to maximize their profits, whereas the consumers take both the prices charged by the retailers and the manufacturers, along with the associated transaction costs, in making their consumption decisions. We identify the network structure of the problem, derive the equilibrium conditions, and establish the finite-dimensional variational inequality formulation. We then utilize variational inequality theory to obtain qualitative properties of the equilibrium pattern. In addition, we propose a continuous time adjustment process for the study of the disequilibrium dynamics and establish that the set of stationary points of the resulting projected dynamical system coincides with the set of solutions of the variational inequality problem. Finally, we apply an algorithm for the determination of equilibrium prices and product shipments in several supply chain examples. This paper synthesizes Business-to-Consumer (B2C) and Business-to-Business (B2B) decision-making in a supply chain context within the same framework.
Starting Page	187
Ending Page	220
Page Count	34
File Format	PDF
ISSN	13859587
Journal	NETNOMICS: Economic Research and Electronic Networking
Volume Number	4
Issue Number	2
e-ISSN	15737071
Language	English
Publisher	Kluwer Academic Publishers
Publisher Date	2002-01-01
Publisher Place	Boston
Access Restriction	Subscribed
Subject Keyword	Data Structures, Cryptology and Information Theory Economic Growth Economic Theory Business Information Systems
Content Type	Text
Resource Type	Article
Subject	Computer Networks and Communications Economics and Econometrics Information Systems

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