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27 4 Vol.27 No.4
2012 8 JOURNAL OF SYSTEMS ENGINEERING Aug. 2012
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Competitive model of supply chain network versus supply chain
network based on bi-level programming
YAO Feng-min, TENG Chun-xian
(Institute of Systems Engineering, Harbin University of Science and Technology, Harbin 150080, China)
Abstract: According to the competition problem among supply chains, this paper established a competitive
model of supply chain network versus supply chain network based on bi-level programming, where the upper
level refers to the optimization problem of government taxes, and the lower level refers to the competitive
behaviors among supply chain networks. It explained how supply chains compete against each other by the
definition of product-market chain. Moreover, the government macro-control is introduced into the competition
problem, and the function of government in regulating the market is indicated by way of product price tax.
These discussions show that the competition among supply chains can be seen as the competition among supply
chain networks that is determined by the core business, and government macro-control policies can effectively
affect the competitive behaviors among supply chain networks. Finally, algorithms based on penalty function
method are presented, and a numerical example is given to test the model.
Key words: supply chain network; government macro-control; competitive model; bi-level programming
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