Equilibrium Model of Discrete Dynamic Supply Chain Network with Random Demand and Advertisement StrategyReport as inadecuate

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Mathematical Problems in Engineering - Volume 2014 2014, Article ID 539768, 14 pages -

Research Article

School of Management Science and Engineering, Qingdao University, Qingdao 266071, China

School of Control Science and Engineering, Shandong University, Jinan 250062, China

Received 25 April 2014; Accepted 17 July 2014; Published 26 August 2014

Academic Editor: Ming Gao

Copyright © 2014 Guitao Zhang et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


The advertisement can increase the consumers demand; therefore it is one of the most important marketing strategies in the operations management of enterprises. This paper aims to analyze the impact of advertising investment on a discrete dynamic supply chain network which consists of suppliers, manufactures, retailers, and demand markets associated at different tiers under random demand. The impact of advertising investment will last several planning periods besides the current period due to delay effect. Based on noncooperative game theory, variational inequality, and Lagrange dual theory, the optimal economic behaviors of the suppliers, the manufactures, the retailers, and the consumers in the demand markets are modeled. In turn, the supply chain network equilibrium model is proposed and computed by modified project contraction algorithm with fixed step. The effectiveness of the model is illustrated by numerical examples, and managerial insights are obtained through the analysis of advertising investment in multiple periods and advertising delay effect among different periods.

Author: Guitao Zhang, Qingmei Sui, Jinsong Hu, Yongguang Zhong, and Hao Sun

Source: https://www.hindawi.com/


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