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Stability in a Specialized Supply Chain Setting

Issue No. 61 (April - May 2010)

The stable Supply Chain Network (SCN) configuration, introduced by Ostrovsky [11], is defined on a finite set of agents A that can be divided into k finite disjoint sets, A1 being the set of suppliers, Ak the set of final consumers, and Ai, i={2,3,…,k-1}, the sets of intermediary agents, and asks for a chain stable allocation of the agents. In our current work we present a specialized version of Ostrovsky’s generic framework, and prove that, under this setting, any k-sided SCN can be decomposed to k-1 united SM sub-markets. Moreover, we implement T-algorithm, presented in [11], as a generalization of the Gale-Shapley algorithm [7], and show how an intermediary-optimal solution can be derived, while we prove that the lattice formed by the set of solutions is distributive.

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