Multiproduct Supply Chain Horizontal Network Integration: Models, Theory, and Computational Results

International Transactions in Operational Research, Forthcoming

Posted: 24 Apr 2009

See all articles by Anna Nagurney

Anna Nagurney

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management

Trisha Woolley

Eugene M. Isenberg School of Management - Department of Finance & Operations Management

Qiang Qiang

Pennsylvania State University - Great Valley School of Graduate Professional Studies

Date Written: March 30, 2009

Abstract

In this paper, we develop multiproduct supply chain network models with explicit capacities, prior to and post 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 multiproduct 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.

Keywords: multiproduct supply chains, horizontal integration, mergers and acquisitions, total cost minimization, synergy

JEL Classification: G34, C61

Suggested Citation

Nagurney, Anna and Woolley, Trisha and Qiang, Qiang, Multiproduct Supply Chain Horizontal Network Integration: Models, Theory, and Computational Results (March 30, 2009). International Transactions in Operational Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1377905

Anna Nagurney (Contact Author)

University of Massachusetts Amherst - Isenberg School of Management - Department of Operations and Information Management ( email )

Amherst, MA 01003-4910
United States

Trisha Woolley

Eugene M. Isenberg School of Management - Department of Finance & Operations Management

Amherst, MA 01003-4910
United States

Qiang Qiang

Pennsylvania State University - Great Valley School of Graduate Professional Studies ( email )

30 E. Swedesford Rd
Malvern, PA 19355
United States

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