Characterizing the tradeoffs and costs associated with transportation congestion in supply chains.
-
2010-01-21
Details:
-
Alternative Title:Final report to the Center for Multimodal Solutions for Congestion Mitigation (CMS)
-
Creators:
-
Corporate Creators:
-
Subject/TRT Terms:
-
Publication/ Report Number:
-
Resource Type:
-
Geographical Coverage:
-
Corporate Publisher:
-
Abstract:We consider distribution and location-planning models for supply chains that explicitly
account for traffic congestion effects. The majority of facility location and transportation
planning models in the operations research literature consider facility operations and
transportation costs as separable (e.g., linear) by origin-destination pairs. Our goal is to
understand how congestion costs and effects, which are not separable, influence supply chain
location and distribution decisions. We study a competitive facility location and market-supply
game with multiple firms competing in multiple markets in a congested distribution network. As
a result of location and quantity decisions, firms are subject to location-specific transportation
costs, convex traffic congestion costs and fixed facility location costs. The unit price in each
market is a linear decreasing function of the total amount shipped to the market by all firms; that
is, we consider an oligopolistic Cournot game and analyze the two-stage Nash Equilibrium. We
discuss the results of extensive numerical studies that illustrate the effects of traffic congestion
on a firm's equilibrium location and quantity decisions and demonstrate the efficiency of our
solution approaches for finding equilibrium solutions.
-
Format:
-
Collection(s):
-
Main Document Checksum:
-
Download URL:
-
File Type: