Research On Supply Chain Network Equilibrium Model Under Interest Disruption

Disruption issues affect the equilibrium condition of supply chain network at many aspects. Such as frequency, scope and economic loss. We should pay more attention to the effect that interests rate has on supply chain network equilibrium condition under the announcement of Central bank of China that there will be no restriction of loan interest for financial institution. Companies in the supply chain network are self-interests oriented which will lead to double marginal effects. It’s also bad for the supply chain network equilibrium condition.This paper tries to create the supply chain network equilibrium model when interests disrupts in the structure of perfect competitive market and decentralized supply chain. This paper also studied the robustness of the model.This paper has expended the study of this area as following. The supply chain network is consist of multi-manufacturers, multi-distributors and multi-demand-market. Companies at the same level of the supply chain network is homogeneous which provide products or service of the same kind. The model also considers attitude of every company to risk as well as the decentralized condition.Projected Dynamical System is applied in the problem solving process. When it comes to the specific data, the model could identify specific quantity and price of each product or service for each company in this supply chain network. In this paper, the author describes the behavior for self-interest of each company in the supply chain network with optimization theory and changes it into variational inequality model. The paper gets the optimal solution for each company then the paper combines all the optimal solution into one variational inequality model and takes in the competition of all companies in the model. By solving the equilibrium model, this model could get the condition that all the company in the supply chain network reach their best solution. At the same the supply chain network get its equilibrium condition. Then the model could identify the pricing strategy and volume strategy.