Corporate Social Responsibility Equilibrium Model of Suppliers and Manufacturers

Under the corporate social responsibility circumstance, a single commodity supply chain network equilibrium model was developed and this supply chain network consisted of two layers of suppliers and manufacturers. In this model the competition between enterprises in the same tier and transaction cost among enterprises in different tier of supply chain were taken into consideration. Based on these considerations, the equilibrium outcome and system profit between manufacturers and suppliers' two-way choice was taken into account respectively under the distributed supply chain networks and centralized supply chain network. The paper further presents solution algorithm to this equilibrium problem and analyzes computation examples. Moreover, the equilibrium output, order volume, the degree of social responsibility and equilibrium price which were derived from the proposed algorithm would be helpful for enterprises in supply chain.