| Rapid changes and complexities in business environments have stressed the interactions between partners and competitors, leading supply chains to become the most important element of contemporary business environments. This dissertation shows how to structuralize complex supply chain to create integrated dynamic models of supply chains using differential variational inequalities under the assumption that the output market for the firms is organized as a non-cooperative spatial oligopoly. Production planning and distribution plans for finished goods are determined by dynamic oligopolistic competition among their producers. In addition to these assumptions, integrated supply chain model assumes that input factor prices are set by contracts extending over the planning horizon and that just-in-time use of factor inputs is pervasive. Furthermore, with the potential of causing financial, reputational, and operational loss, supply chain disruption must be managed through the optimized planning and design of supply chain networks. Finally, this dissertation presents a mathematically dynamic supply chain network model threatened by disruptions and formulates a mathematical model as differential variational inequalities(DVI). The DVI is solved using a fixed-point algorithm, and finally a simple numerical example, introduced to compare supply chain optimization with and without disruptions, is presented. |
