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Regular version of the site

Article

Stochastic Perspective of Industrial Distribution Network Processes

Industrial Marketing Management. 2011. Vol. 40. P. 979-987.
Sheresheva M. Y., Kolesnik N. A.

This article investigates contemporary distribution processes in the industrial market. The main trend in distribution during the recent decades manifests itself in a growing number of network-type distribution chains. Based on the evolutionary trends in distribution research, we came up with the idea to investigate distribution networks processes using mathematical tools of probability theory. We consider a distribution network in a stochastic way, where a focal agent optimizes the distribution chain at each decision-making node by switching between possible partners. This allows us to apply time-homogeneous Markov chains theory to explore the partner selection process. We present an approach that allows for the estimating of implicit non-price variables of partner choice in a supply chain.