Production and transportation planning based on a cooperative game approach

This article is focused on the problem of planning coordination between manufacturer and transport operator inside a supply chain. A game theory approach is proposed in order to find a win-win planning solution. This approach is based on a cooperative game using the Shapley value in order to share profit between partners. This game uses linear programing models to simulate the supply chain planning activities. Through some preliminary results, we demonstrate that the profit of each partner can be increased.

[1]  Mikael Rönnqvist,et al.  Integrated Production Planning and Route Scheduling in Pulp Mill Industry , 2002, HICSS.

[2]  G. Dudek,et al.  Collaborative Planning in Supply Chains: A Negotiation-Based Approach , 2004 .

[3]  Paul A. Rubin,et al.  Joint Optimality in Buyer‐Supplier Negotiations , 1990 .

[4]  Yoav Shoham,et al.  Essentials of Game Theory: A Concise Multidisciplinary Introduction , 2008, Essentials of Game Theory: A Concise Multidisciplinary Introduction.

[5]  S. Deshmukh,et al.  A Review on Supply Chain Coordination: Coordination Mechanisms, Managing Uncertainty and Research Directions , 2011 .

[6]  Hans-Otto Günther,et al.  Multi-objective integrated production and distribution planning of perishable products , 2012 .

[7]  Hamid Davoudpour,et al.  An integrated supply chain production-distribution planning with stochastic demands , 2014, Comput. Ind. Eng..

[8]  Josefa Mula,et al.  Mathematical programming models for supply chain production and transport planning , 2010, Eur. J. Oper. Res..

[9]  Bongju Jeong,et al.  Decentralized supply chain planning framework for third party logistics partnership , 2008, Comput. Ind. Eng..

[10]  Kevin Crowston,et al.  The interdisciplinary study of coordination , 1994, CSUR.

[11]  Rémy Dupas,et al.  A negotiation protocol to improve planning coordination in transport-driven supply chains , 2016 .

[12]  Carlos A. Méndez,et al.  Mathematical programming and game theory optimization-based tool for supply chain planning in cooperative/competitive environments , 2013 .

[13]  Mingming Leng,et al.  Side-payment contracts in two-person nonzero-sum supply chain games: Review, discussion and applications , 2009, Eur. J. Oper. Res..

[14]  Tatsushi Nishi,et al.  A Game Theoretic Model to Manufacturing Planning with Single Manufacturer and Multiple Suppliers with Asymmetric Quality Information , 2013 .