Modelling viable supply networks with cooperative adaptive financing

2026-01-19

AI Summary

This study addresses the vulnerability of supply chain networks in financial liquidity and risk governance by proposing a dynamic complex adaptive system model that integrates a scale-free network structure to simulate inter-firm collaboration. The work introduces a distributed control–based financial liquidity sharing strategy, innovatively incorporating a cooperative coalition overlap mechanism to uncover the synergistic relationship between information visibility and network survivability. Findings reveal that network survivability is highly dependent on cooperation, and in scale-free networks, both survivability and information visibility scale positively with network size. Moreover, the proposed distributed control strategy—requiring only local partner information—outperforms centralized approaches, significantly enhancing the resilience and adaptability of supply chains in complex and dynamic environments.

Technology Category

• Constraint Satisfaction and Optimization: Distributed CSP/Optimization
• Game Theory and Economic Paradigms: Coordination and Collaboration
• Search and Optimization: Distributed Search

Application Category

• Economics, Online Markets and Human Computation: Incentives in network design for Web infrastructures and ecosystems
• Security and Privacy: Blockchains and distributed ledgers
• Graph Algorithms and Modeling for the Web: Efficient manipulation of static and dynamic Web-related graphs

Abstract

We propose a financial liquidity policy sharing method for firm-to-firm supply networks, introducing a scalable autonomous control function for viable complex adaptive supply networks. Cooperation and competition in supply chains is reconciled through overlapping collaborative sets, making firms interdependent and enabling distributed risk governance. How cooperative range - visibility - affects viability is studied using dynamic complex adaptive systems modelling. We find that viability needs cooperation; visibility and viability grow together in scale-free supply networks; and distributed control, where firms only have limited partner information, outperforms centralised control. This suggests that policy toward network viability should implement distributed supply chain financial governance, supporting interfirm collaboration, to enable autonomous control.

Problem

• supply networks
• viability
• cooperative financing
• complex adaptive systems
• distributed control

Innovation

• cooperative adaptive financing
• distributed control
• complex adaptive supply networks
• viability
• liquidity policy sharing