Strategic and Tactical Design of Competing Decentralized Supply Chain Networks with Risk-Averse Participants for Markets with Uncertain Demand

Table 5

Optimal values of the supply chain networks in scenario two (𝑑=0.9).

Variables and characteristics	Existing network		New network
Supply chain network design	𝑁^11={{1,2},{3},{4,5}}		𝑁^22={{1,2,3,4,5},{}}
Utility of network design scenario for the manufacturer	𝑢𝑀1(𝜋^∗𝑀1)	95.403	𝑢𝑀2(𝜋^∗𝑀2)	167.07
Expected profit of the manufacturers in the scenario	𝐸(𝜋^∗𝑀1)	163.33	𝐸(𝜋^∗𝑀2)	293.85
Utility and expected profit of retailers in the scenario	𝑢𝑅11(𝜋^∗𝑅11),𝐸(𝜋^∗𝑅11)	33.751, 53.751	𝑢𝑅12(𝜋^∗𝑅12),𝐸(𝜋^∗𝑅12)	238.030, 419.37
	𝑢𝑅21(𝜋^∗𝑅11),𝐸(𝜋^∗𝑅21)	26.920, 47.833	𝑢𝑅22(𝜋^∗𝑅22),𝐸(𝜋^∗𝑅22)	0, 0
	𝑢𝑅31(𝜋^∗𝑅31),𝐸(𝜋^∗𝑅31)	108.620, 146.88
Wholesale prices and advertising expenditures	𝑤^∗1,𝑎^∗1	12.778, 11.115	𝑤^∗2,𝑎^∗2	13.364, 16.3
Profit margins of retailers	(𝑚^∗11,𝑚^∗12,𝑚^∗13)	(3.162, 2.557, 6.916)	(𝑚^∗21,𝑚^∗22)	(5.690, 0)
Service level of retailers	(𝑠^∗11,𝑠^∗12,𝑠^∗13)	(1.581, 0.460, 3.181)	(𝑠^∗21,𝑠^∗22)	(6.487,0)