Abstract
This paper focuses on supply chain-transport supernetworks and presents a model for optimising the values of discrete design variables in a transport network. Modelling is undertaken on the basis of MPEC, where the upper level is a combinatorial optimisation problem for determining the best combination of links on the transport network, whilst the lower level describes the decentralised decision-making of manufacturers, wholesalers, retailers, demand markets (consumers), freight carriers and passengers. A supply chain-multimodal transport supernetwork equilibrium (SC-MT-SNE) model is developed and incorporated within the lower level. These are mathematically formulated, and the equilibrium conditions to be governed in the whole supernetwork are derived. Numerical examples are then undertaken for investigating the influence of the improvement and disruption of links in a transport network on the performance of supply chain networks.
