Equilibrium Supply-Demand Allocation in a Single-Commodity Network

Abstract

This paper is devoted to the recent findings in the analytical research of supply-demand allocation in a single-commodity network with distant (in space) suppliers and consumers. The allocation problem is formulated as an equilibrium flow assignment problem with affine functions of demand, supply, and logistic costs in a network represented by a digraph with suppliers and consumers located in nodes. We offer a brief overview of supply-demand relocation patterns obtained for elastic, shortage, and overproduction cases. Such kinds of results seem valuable since they allow one to develop different competitive distribution models to facilitate the decisionmaking of supply chain managers. In particular, supply chain managers can use available patterns to design decision-making strategies that mitigate risks concerning disruption or ripple effects.