Supply chain game theory network modeling under labor constraints: Applications to the Covid-19 pandemic

The Covid-19 pandemic has brought attention to supply chain networks due to disruptions for many reasons, including that of labor shortages as a consequences of illnesses, death, risk mitigation, as well as travel restrictions. Many sectors of the economy from food to healthcare have been competing for workers, as a consequence. In this paper, we construct a supply chain game theory network framework that captures labor constraints under three different scenarios. The appropriate equilibrium constructs are defined, along with their variational inequality formulations. Computed solutions to numerical examples inspired by shortages of migrant labor to harvest fresh produce; specifically, blueberries, in the United States, reveal the impacts of a spectrum of disruptions to labor on the product flows and the profits of the firms in the supply chain network economy. This research adds to the literature in both economics and operations research. (C) 2021 Elsevier B.V. All rights reserved.

Automated summary

This study investigates the impact of the Covid-19 pandemic on supply chain networks, analyzing labor constraints under three different scenarios using a supply chain game theory network framework. It explores the effects of disruptions to labor on product flows and firm profits in the supply chain network economy through numerical examples inspired by shortages of migrant labor harvesting blueberries in the United States.