Majority equilibrium of distribution centers allocation in supply chain management

Authors:
Lihua Chen;Qiwen Wang
Affiliations:
Guanghua School of Management, Peking University, Beijing, P.R. China;Guanghua School of Management, Peking University, Beijing, P.R. China
Venue:
WINE'05 Proceedings of the First international conference on Internet and Network Economics
Year:
2005

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Abstract

In this paper, we consider the distribution center allocation problem decided through an optimal utility value under the majority rule in supply chain management. A location of the distribution center is a majority rule winner with optimal utility value if no other location in the network where more than half of the retailers would have, is with better utility value than the winner. We define a weight function and established the network model for the cases with one or even more than one distribution centers to be located. We show that there exists a modified weak quasi-Condorcet winner if the distribution center allocation graph model is a tree. Based on above discussion we proposed an practical majority equilibrium method for general distribution center allocation problems.