A COMPLEMENTARITY MODEL AND ALGORITHM FOR DIRECT MULTI-COMMODITY FLOW SUPPLY CHAIN NETWORK EQUILIBRIUM PROBLEM

Abstract

In this paper, a three-level supply chain network equilibrium problem with direct selling and multi-commodity flow is considered. To this end, we first present equilibrium conditions which satisfy decision-making behaviors for manufacturers, retailers and consumer markets, respectively. Based on this, a nonlinear complementarity model of supply chain network equilibrium problem is established. In addition, we propose a new projection-type algorithm to solve this model without the backtracking line search, and global convergence result and R—linearly convergence rate for the new algorithm are established under weaker conditions, respectively. We also illustrate the efficiency of given algorithm through some numerical examples.