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The logistics facility decisions may be the most critical and most difficult of the decisions needed to realize an efficient supply chain since these decisions have significant effects on the logistics costs generated in the logistics network. We establish a logistics super network equilibrium integrating urban logistics facilities with members of traditional supply chain network, using the variational inequality theory. This model takes into account the behavior of logistics facilities and the transactions between retailers and logistics facilities are examined in this paper. Furthermore, we obtain the equilibrium condition of the system, and the economic explanation and algorithm are given. Finally, some verification examples are provided to verify the solution and decision-making application.

A Supply Chain-Logistics Super-Network Equilibrium Model for Urban Logistics Facility Network Optimization