Supply Chain Supernetworks and Environmental Criteria Anna Nagurney and Fuminori Toyasaki Department of Finance and Operations Management Isenberg School of Management University of Massachusetts Amherst, Massachusetts 01003 May 2002; revised November 2002 Appears in Transportation Research D 8 (2003), 185-213. Abstract: In this paper, we develop a framework for the modeling and analysis of supply chain networks with electronic commerce in which the decision-makers are faced with mul- tiple criteria, including environmental ones. We establish the optimality conditions for the manufacturers, retailers, and consumers, derive the equilibrium conditions, and provide the variational inequality formulation. We also propose a continuous time adjustment process for the study of the disequilibrium dynamics. Finally, we apply an algorithm for the deter- mination of equilibrium prices and product shipments as well as the emissions generated in several supply chain examples. Key words: supply chains, environment, multicriteria decision-making, network equilib- rium, variational inequalities. 1