MODELLING SUPPLY CHAIN NETWORK EQUILIBRIUM WITH THE BEHAVIOUR OF MULTI-TIERED SUPPLIERS OF RAW MATERIALS AND SEMI-PRODUCTS

Abstract

 This paper presents a supply chain network equilibrium model with the behaviour of multi-tiered suppliers of raw materials and semi-products. Within the model, the decentralised decision-making of manufacturers, wholesalers, retailers, consumers, freight carriers and suppliers on supply chain networks (SCNs) is incorporated, with its interaction being taken into account. The model also deals with the transformation of raw materials undertaken through the upper to lower suppliers using product functions. Numerical tests are conducted with the model for investigating the influence on SCN performance of the substitution of raw materials as well as of the disaster-hit suppliers.