Supply Chain Coordination between Autonomous Agents - a game theory approach

A supply chain is a network of suppliers, factories, warehouses, distribution centers and retailers, through which raw materials are acquired, transformed, produced and delivered to the customer. A supply chain management system (SCMS) manages the cooperation of these system components. In the computational world, roles of individual entities in a supply chain can be implemented as distinct agents [1]. In this paper we present supply chain coordination between Autonomous Agents. Moreover, we present a cooperative game theory approach to describe the SCM coordination. Numerical and theoretical game examples are detailed in this paper, which help to understand the usefulness of cooperative game theory in SCM.

[1]  Robert J. Bennett,et al.  Enterprise and Human Resource Development: Local Capacity Building , 1993 .

[2]  Katarzyna Grzybowska,et al.  Developing Agile Supply Chains - System Model, Algorithms, Applications , 2012, KES-AMSTA.

[3]  Hussein A. Rady,et al.  Multi-Agent System for Negotiation in a Collaborative Supply Chain Management , 2013 .

[4]  M. Parlar,et al.  A three-person game theory model arising in stochastic inventory control theory , 1994 .

[5]  C. S. Holling,et al.  Panarchy Understanding Transformations in Human and Natural Systems , 2002 .

[6]  B. Welch.  The structure , 1992 .

[7]  J. Nash.  Equilibrium Points in N-Person Games. , 1950, Proceedings of the National Academy of Sciences of the United States of America.

[8]  Moshe Shaked,et al.  The Newsvendor Game Has a Nonempty Core , 2002, Games Econ. Behav..

[9]  Moshe Dror,et al.  Cores of Inventory Centralization Games , 2000, Games Econ. Behav..

[10]  D. Wilson,et al.  Social theory and fisheries co-management , 1998 .

[11]  Marcin Relich.  Knowledge acquisition for new product development with the use of an ERP database , 2013, 2013 Federated Conference on Computer Science and Information Systems.

[12]  Robert J. Aumann,et al.  16. Acceptable Points in General Cooperative n-Person Games , 1959 .

[13]  L. Shapley.  A Value for n-person Games , 1988 .

[14]  M. Dufwenberg.  Game theory. , 2011, Wiley interdisciplinary reviews. Cognitive science.

[15]  Rui Chen,et al.  Coordination in emergency response management , 2008, CACM.

[16]  Game-Theoretic Analysis of Cooperation Among Supply Chain Agents: Review and Extensions , 2006 .

[17]  Mahmut Parlar,et al.  Static game theory models and their applications in management science , 1989 .

[18]  X. Vives.  Oligopoly Pricing: Old Ideas and New Tools , 1999 .

[19]  Liesbet Hooghe,et al.  Types of Multi-Level Governance , 2002 .

[20]  G. Feichtinger,et al.  Differential game models in management science , 1983 .

[21]  J. Friedman.  Game theory with applications to economics , 1986 .

[22]  Katarzyna Grzybowska,et al.  Sustainable supply chain - Supporting tools , 2014, 2014 Federated Conference on Computer Science and Information Systems.

[23]  William F. Lucas,et al.  An Overview of the Mathematical Theory of Games , 1972 .

[24]  M. Danson.  Regional governance and economic development , 1997 .

[25]  Pawel Sitek,et al.  A hybrid CP / MP approach to supply chain modelling , optimization and analysis , 2014 .

[26]  H. W. Kuhn,et al.  11. Extensive Games and the Problem of Information , 1953 .

[27]  Brigitte Maier,et al.  Supermodularity And Complementarity , 2016 .

[28]  R. Plummer,et al.  Adaptive Co-Management for Climate Change Adaptation: Considerations for the Barents Region , 2013 .

[29]  Katarzyna Grzybowska.  Selected Activity Coordination Mechanisms in Complex Systems , 2015, PAAMS.

[30]  Daniel Granot,et al.  A Three-Stage Model for a Decentralized Distribution System of Retailers , 2003, Oper. Res..

[31]  F. Berkes,et al.  Adaptive co-management for social–ecological complexity , 2009 .

[32]  E. Kohlberg.  On the Nucleolus of a Characteristic Function Game , 1971 .

[33]  Harborne W. Stuart,et al.  Cooperative Games and Business Strategy , 2002 .

[34]  M. Parlar,et al.  Analytic solution for the nucleolus of a three‐player cooperative game , 2010 .

[35]  M. Shubik.  Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing , 1962 .

[36]  Jarosław Wikarek,et al.  A Hybrid Approach to the Optimization of Multiechelon Systems , 2015 .

[37]  J. Neumann,et al.  Theory of games and economic behavior , 1945, 100 Years of Math Milestones.

[38]  Mike Danson,et al.  Regional Governance, Institutions and Development , 1999 .

[39]  Gábor Kovács.  The structure, modules, services, and operational process of modern electronic freight and warehouse exchanges , 2009 .

[40]  Fikret Berkes,et al.  Adaptive Co-Management: Collaboration, Learning, and Multi-Level Governance , 2014 .

[41]  J. Neumann,et al.  The Theory of Games and Economic Behaviour , 1944 .

[42]  Lars Bankvall.  Activity coordination from a firm perspective- towards a framework , 2008 .

[43]  Ki Hang Kim.  Game theory in the social sciences , 1986 .

[44]  Tim Finin,et al.  Negotiating agents for supply chain management , 1999, AAAI 1999.

[45]  R. Plummer,et al.  Managing protected areas for sustainable tourism: prospects for adaptive co-management , 2009 .

[46]  Gérard P. Cachon,et al.  Contracting to Assure Supply: How to Share Demand Forecasts in a Supply Chain , 2001, Manag. Sci..

[47]  Adam Brandenburger,et al.  Value-based Business Strategy , 2005 .

[48]  H. Moulin.  Cooperative Microeconomics: A Game-Theoretic Introduction , 1995 .

[49]  Gérard P. Cachon,et al.  Capacity Choice and Allocation: Strategic Behavior and Supply Chain Performance , 1999 .

[50]  Philip Wolfe,et al.  Contributions to the theory of games , 1953 .

[51]  Derek Armitage,et al.  Charting the New Territory of Adaptive Co-management: A Delphi Study , 2007 .