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Competitive supply chains compose a complex network with multi-tier structure, where members at same tier compete in a Nash game. Under the assumption that the consumers are stochastic multicriteria decision-makers, who firstly choose which retailer they transact with, and then make their consumption decisions with deficient information, this paper use nested logit model to character the consumerspsila choice. The equilibrium models of each tier and the whole network are developed by the method of variational inequality, along with their economic interpretations. Finally, an algorithm for solving the equilibrium of supply chain network is provided and used to solve a numerical example. The example shows the validity of the model and efficiency of the algorithm.
Date of Conference: 1-3 Sept. 2008