A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments
The uncertain nature of supply chains is one of the key challenges managers, and researchers encounter in decision-making. Accordingly, this paper proposes a three-echelon supply chain in which demands are uncertain. The proposed supply chain has three participants, including supplier, manufacturer,...
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| Format: | Article |
| Language: | English |
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Wiley
2023-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2023/2717996 |
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| author | Mohammad Ferdousmakan Roya M. Ahari Mohammadreza Vasili Majid Vaziri Sarashk |
| author_facet | Mohammad Ferdousmakan Roya M. Ahari Mohammadreza Vasili Majid Vaziri Sarashk |
| author_sort | Mohammad Ferdousmakan |
| collection | DOAJ |
| description | The uncertain nature of supply chains is one of the key challenges managers, and researchers encounter in decision-making. Accordingly, this paper proposes a three-echelon supply chain in which demands are uncertain. The proposed supply chain has three participants, including supplier, manufacturer, and retailer, while three decentralized, centralized, and coordination models have been formulated to maximize participants’ profits. In the decentralized model, both the manufacturer and retailer independently determine the level of investment and order quantity regarding scenario-based demands. The centralized model determines the optimal order quantity and investment amounts for the whole network. However, these amounts may be different from optimal values for all participants. As such, using game theory, a bilevel adjustable contract based on wholesale price has been proposed as an incentive for players to participate in the coordination plan. Results show that the coordination model outperforms others by reducing the network’s costs and increasing profits simultaneously. |
| format | Article |
| id | doaj-art-70f0d71c8f9e4c8b9526f2dc6118db20 |
| institution | Kabale University |
| issn | 1607-887X |
| language | English |
| publishDate | 2023-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-70f0d71c8f9e4c8b9526f2dc6118db202025-02-03T06:48:32ZengWileyDiscrete Dynamics in Nature and Society1607-887X2023-01-01202310.1155/2023/2717996A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in PaymentsMohammad Ferdousmakan0Roya M. Ahari1Mohammadreza Vasili2Majid Vaziri Sarashk3Department of Industrial EngineeringDepartment of Industrial EngineeringDepartment of Industrial EngineeringDepartment of Industrial EngineeringThe uncertain nature of supply chains is one of the key challenges managers, and researchers encounter in decision-making. Accordingly, this paper proposes a three-echelon supply chain in which demands are uncertain. The proposed supply chain has three participants, including supplier, manufacturer, and retailer, while three decentralized, centralized, and coordination models have been formulated to maximize participants’ profits. In the decentralized model, both the manufacturer and retailer independently determine the level of investment and order quantity regarding scenario-based demands. The centralized model determines the optimal order quantity and investment amounts for the whole network. However, these amounts may be different from optimal values for all participants. As such, using game theory, a bilevel adjustable contract based on wholesale price has been proposed as an incentive for players to participate in the coordination plan. Results show that the coordination model outperforms others by reducing the network’s costs and increasing profits simultaneously.http://dx.doi.org/10.1155/2023/2717996 |
| spellingShingle | Mohammad Ferdousmakan Roya M. Ahari Mohammadreza Vasili Majid Vaziri Sarashk A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments Discrete Dynamics in Nature and Society |
| title | A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments |
| title_full | A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments |
| title_fullStr | A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments |
| title_full_unstemmed | A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments |
| title_short | A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments |
| title_sort | game theory approach for supply chain coordination model with incentive mechanisms of discount and delay in payments |
| url | http://dx.doi.org/10.1155/2023/2717996 |
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