Supply chain competition relationship model based on network structures

Building a good supply network has a competitive advantage in every part of business. However, people rarely know the principles from which supply chain with complex organizational structure and function arise and develop. How to use new theoretical approach to deal with this complex change is an important issue facing the Supply Chain Management (SCM). In this paper, the dynamic evolutionary characteristics of supply network is analyzed first, we find that the degree distribution follows a power - law distribution. That indicate a supply network is a scale - free network where few but significant firms have lots of connections (called “hub” or core firm), while most firms have few connections. Then the Competition model was proposed to analysis the competition relationship of supply chains based on the scale - free characteristics of supply network. Last some suggestions of supply chain management are given.