A geometric representation of profits in a supply chain network

Date

2012-05-01

Author

Serin, Yaşar Yasemin

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Economists express profits as areas representing producer's surplus or consumer's surplus corresponding to a pair of supply and demand functions. A similar representation can be employed in a supply chain network where there can be several producers/suppliers and several consumers/retailers in various trading situations. We aim to graphically represent the profits corresponding to a combination of the decisions of all participants in a supply chain, simultaneously, as areas of non-overlapping regions on the same graph. This way, the shares of the participants in the total can be visually observed and the interdependencies and the inefficiencies in the chain can be detected where the decisions and the corresponding profits are generally interdependent. Such a visual tool can be used in evaluating as well as in designing a supply chain.

Subject Keywords

Equilibrium, Inefficiency, Single period profits, Supply chain

URI

https://hdl.handle.net/11511/46708

Journal

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS

DOI

https://doi.org/10.1016/j.ijpe.2012.01.010

Collections

Department of Industrial Engineering, Article

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Citation Formats

Y. Y. Serin, “A geometric representation of profits in a supply chain network,” INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, pp. 36–44, 2012, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/46708.