Closed loop supply chain network design under competitive environment

A large-scale enterprise is planning to select right locations to open a number of firms and enter an existed industry. The entering enterprise has to compete with the existed enterprises. Furthermore, original network economic equilibrium must be break and the network will attain new equilibrium state. Hence, one-leader-multiple-followers Stackelberg strategies problem is discussed that the entering one behaves as the leader and the existed ones are followers. Network equilibrium model is used to obtain the economic equilibrium state. A network design model is proposed by using the methods of equilibrium theory and variational inequality. A hybrid solution method is built to solve the problem. Finally, a numerical example is given to show rationality of the model.