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Equilibrium Conditions of a Logistics Service Supply Chain with a New Smoothing Algorithm

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Listed:
  • Wei Liu

    (College of Transport and Communications, Shanghai Maritime University, Shanghai, P. R. China)

  • Chan He

    (College of Business, Shanghai Dianji University, Shanghai, P. R. China)

Abstract

In this paper, we develop a logistics service supply chain network equilibrium model in which four tiers of decision makers (logistics service subcontractors (LSS), logistics service providers (LSP), logistics services integrators (LSI) and logistics service demand sides (LSD)) seek to determine their respective optimal conditions, with the LSI holding a leading position. We model the optimizing behavior of decision-makers, with the LSI being multicriteria decision-makers which are concerned with both profit maximization and risk minimization. We derive the equilibrium conditions and establish the finite-dimensional variational inequality (VI) formulation. A new smoothing self-adaptive L-M algorithm is established to solve this problems. Finally, we illustrate the effectiveness and feasibility of the model by an example.

Suggested Citation

  • Wei Liu & Chan He, 2018. "Equilibrium Conditions of a Logistics Service Supply Chain with a New Smoothing Algorithm," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(02), pages 1-22, April.
    • Handle: RePEc:wsi:apjorx:v:35:y:2018:i:02:n:s0217595918400031
    DOI: 10.1142/S0217595918400031
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    References listed on IDEAS

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