A competitive multiperiod supply chain network model with freight carriers and green technology investment option

Sara Saberi, Jose M. Cruz, Joseph Sarkis and Anna Nagurney

European Journal of Operational Research, 2018, vol. 266, issue 3, 934-949

Abstract: This paper presents a multiperiod supply chain with freight carriers network model. In this model manufacturers, retailers, and carriers maximize the net present value (NPV) of their investments in ecologically friendly technology. Future production, inventory, transaction, and transportation costs savings are used to help fund investments. The environmental impact of production, inventory, transportation, and consumption of products in the supply chain network are all integrated. The tradeoff between the initial technology investment and its ecological footprint effect is considered for the supply chain planning period. We provide variational inequality formulations of the equilibrium conditions and then propose the modified projection method, along with conditions for convergence. Numerical examples are examined with an analysis of the effects of ecologically friendly technology investments on supply chain network production, transportation, and sales.

Keywords: Green supply chain management; Game theory; Multiperiod planning; Net present value; Technology investment (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (46)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:266:y:2018:i:3:p:934-949

DOI: 10.1016/j.ejor.2017.10.043

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