Integrated game-theory modelling for multi enterprise-wide coordination and collaboration under uncertain competitive environment

•Stackelberg and NE games are integrated in a single Game Theory approach.•The Stackelberg game of non-convex MINLP tactical models are solved.•The game players are represented with their competing 3rd parties.•A novel game theory output is presented as a “Stackelberg set of Pareto frontier”.•The co...

Full description

Saved in:
Bibliographic Details
Published in:Computers & chemical engineering 2017-03, Vol.98, p.209-235
Main Authors: Hjaila, Kefah, Puigjaner, Luis, Laínez, José M., Espuña, Antonio
Format: Article
Language:English
Subjects:
Business logistics
Competition
Coordination
Decentralized multi-participant SC
Economia i organització d'empreses
Economia matemàtica
Enginyeria química
Game theory
Jocs, Teoria de
Mathematical models
Models matemàtics
Pareto-frontiers
Uncertainty
Àrees temàtiques de la UPC
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:•Stackelberg and NE games are integrated in a single Game Theory approach.•The Stackelberg game of non-convex MINLP tactical models are solved.•The game players are represented with their competing 3rd parties.•A novel game theory output is presented as a “Stackelberg set of Pareto frontier”.•The coordination contracts vs. the “uncertainty reduction cost” are analyzed. In this work, an integrated Game Theory (GT) approach is developed for the coordination of multi-enterprise Supply Chains (SCs) in a competitive uncertain environment. The conflicting goals of the different participants are solved through coordination contracts using a non-cooperative non-zero-sum Stackelberg game under the leadership of the manufacturer. The Stackelberg payoff matrix is built under the nominal conditions, and then evaluated under different probable uncertain scenarios using a Monte-Carlo simulation. The competition between the Stackelberg game players and the third parties is solved through a Nash Equilibrium game. A novel way to analyze the game outcome is proposed based on a win–win Stackelberg set of “Pareto-frontiers”. The benefits of the resulting MINLP tactical models are illustrated by a case study with different vendors around a client SC. The results show that the coordinated decisions lead to higher expected payoffs compared to the standalone case, while also leading to uncertainty reduction.
ISSN:0098-1354
1873-4375
DOI:10.1016/j.compchemeng.2016.11.041