Supply chain network competition in time-sensitive markets

We develop a game theory model for supply chain network competition in time-sensitive markets in which consumers respond to the average delivery time associated with the various firms’ products. The firms’ behavior is captured, along with the supply chain network topologies, with the governing equilibrium concept being that of Nash equilibrium. We derive the variational inequality formulation of the equilibrium conditions and provide illustrative examples. We also identify special cases for distinct applications. An algorithm is proposed, and the framework further illustrated through a case study in which we explore varying sensitivities to the average time delivery with interesting results.