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Multi‐product supply chain horizontal network integration: models, theory, and computational results
Author(s) -
Nagurney Anna,
Woolley Trisha,
Qiang Qiang
Publication year - 2010
Publication title -
international transactions in operational research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.032
H-Index - 52
eISSN - 1475-3995
pISSN - 0969-6016
DOI - 10.1111/j.1475-3995.2009.00719.x
Subject(s) - supply chain , supply chain network , computer science , exploit , variational inequality , perspective (graphical) , product (mathematics) , mathematical optimization , mergers and acquisitions , supply chain management , industrial engineering , economics , business , mathematics , artificial intelligence , engineering , geometry , computer security , finance , marketing
In this paper, we develop multi‐product supply chain network models with explicit capacities, before and after their horizontal integration. In addition, we propose a measure, which allows one to quantify and assess, from a supply chain network perspective, the synergy benefits associated with the integration of multi‐product firms through mergers/acquisitions. We utilize a system‐optimization perspective for the model development and provide the variational inequality formulations, which are then utilized to propose a computational procedure which fully exploits the underlying network structure. We illustrate the theoretical and computational framework with numerical examples. This paper is a contribution to the literatures of supply chain integration and mergers and acquisitions.