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Equilibrium in a Distribution Network

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Abstract

A network consisting of suppliers, agents, and distributors is considered. The flow of orders and deliveries between the different elements are determined. We attempt to develop a numerical description of the supply and demand structure for the deliveries of commodities in the network. We suppose that orders and deliveries be met with conditions of uncertain overhead expenses. In certain situations, the orders and deliveries do not match for a given supply and demand structure. In such cases, individual participants in the network are assumed to act rationally with the object of maximizing their profit.

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