Port-user Supply Chain Coordination: A Bi-level Programming Approach

Since1990s, supply chain management changed the competition ways of enterprise.With the development of global economic, the enterprise competition is no longer aone-to-one, but the core enterprise of supply chain to supply chain competition. How tocoordinate the individual interests of enterprises in the supply chain effective whenoptimize the whole profits of port supply chain, so that the whole port supply chainperformance to achieve the interests of both local and business satisfaction is the keyproblem to successful port supply chain management. Therefore, it is import to optimizethe port supply chain operation.Firstly, based on the domestic and foreign research on supply chain and port supplychain, further clarify the application of the supply chain theory in the port enterprise andthe current existing problems.Secondly, on the basis of in-depth analysis present situation of port enterprises, portsupply chain management model is put forward. And then this paper proposes that the portsupply chain also has gradation. Different members of the supply chain are in differentdecision-making level, they have different decision-making power and range, and thedecision is depend on each other. Thus, choose bi-level programming theory to researchthe port supply chain operation optimization problems. Bi-level programming caneffectively solve the problem of game with hierarchy and constraints.Thirdly, we systematacially analyse the present situation of the port supply chainoperation in this paper. At present the ports widely adopt distributed supply chainmanagement model, which can realize the local optimum of the port supply chain. Herewe realize the local optimum of the supply chain by using the theory of bi-levelprogramming. we introduce a coordinated port supply chain management, which canrealize the global optimum of the port supply chain. At the same time, we establishedbi-level programming model, further quantitative analysis. Finally, in the study ofdemonstration in Qin Huangdao port, the paper establishes the port supply chain ofhorizontal supply chain, which is cored in the Qin Huangdao port, basing on a hand of investigations. Take domestic trade container transport as an example, it calculates thesolution of two ports and two owner of cargo, and analyzes the results of the bi-levelprogramming model. Finally, it puts forward the development measures of supply chain inQin Huangdao port.