Dual Channel Equilibrium for Supply Chain Network

A dual channel network equilibrium problem is investigated,in which manufacturers' products are sold to the consumer market with random demand via the retails by physical transactions of the distributors and directly by electronic transactions.Moreover,the production capacity constraints of the manufacturers and the price ceiling of the consumer market are considered comprehensively.The equilibrium conditions of the supply market,the distributor market,the retailer market and the consumer market are modeled via finite-dimensional variational inequality respectively,and then the dual channel equilibrium pattern of the entire supply chain network is established.The projection and contraction algorithm is designed to solve the dual channel network equilibrium problem.The numerical examples' results show that when the government imposes a binding price ceiling on competitive markets,a shortage of the good arises,the total profit of manufacturers and the distributors and the retailers decreases,which is more serious in the existence of production capacity constraints.