Supply chain supernetworks and environmental criteria

In this paper, we develop a framework for the modeling and analysis of supply chain networks with electronic commerce in which the decision makers are faced with multiple criteria, including environmental ones. We establish the optimality conditions for the manufacturers, retailers, and consumers, derive the equilibrium conditions, and provide the variational inequality formulation. We also propose a continuous time adjustment process for the study of the disequilibrium dynamics. Finally, we apply an algorithm for the determination of equilibrium prices and product shipments as well as the emissions generated in several supply chain examples. (C) 2003 Elsevier Science Ltd. All rights reserved.