Supply chain network dynamics with multi-objective decision under demand uncertainty

The dynamics of a three tiers supply chain network in the presence of demand uncertainty is considered in this paper. The objective is assessed by taking into account not only the profit over the time horizon, but also the resulting uncovered demand satisfaction. An equilibrium variational inequality (VI) for all the nodes of the supply chain is derived. The proposed model is tested using modified Goldstein-Levitin-Polyak projection algorithm. A numerical example is provided for illustrative purpose. And the results illustrate the demand satisfaction tends to reduce the amount of product flow between node of the supply chain.