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Contributions to Game Theory and Management, 2018, Volume 11, Pages 22–41 (Mi cgtm320)  

Coordination versus competition in supply chains

Irina Berezinetsa, Yulia Lonyaginaa, Natalia Nikolchenkoa, Ekaterina Zenkevichb

a St. Petersburg State University, 7/9 Universitetskaya nab., St. Petersburg, 199034, Russia
b AGT (R&D) Group GmbH 64295, Hilpertstrasse 35, Hessen, Germany
References:
Abstract: This paper considers the problem of coordination in supply networks. The model is based on distribution network, which includes several manufactures, single distributor and multi retailers, operated and competed in consumer markets that are functioning according to the Cournot model with the linear demand. All participants in a chain are trying to maximize their profit. For coordination solution the maximization flow model was developed. We used the the perfect Nash equilibrium in the multi-step hierarchical game in the closed form for competitive model. The comparative analysis of coordination and competition in distribution network was carried out. The obtained results demonstrated advantages and disadvantages of the developed model. Numerical example for the network justified the necessity of applying additional coordination mechanisms to achieve better results for all members of the network.
Keywords: supply chain management, coordination, perfect Nash equilibrium, maximum flow problem, distribution network.
Funding agency Grant number
Russian Foundation for Basic Research 16-01-00805_a
This work is supported by the Russian Foundation for basic Research, project No. 16-01-00805A.
Document Type: Article
Language: English
Citation: Irina Berezinets, Yulia Lonyagina, Natalia Nikolchenko, Ekaterina Zenkevich, “Coordination versus competition in supply chains”, Contributions to Game Theory and Management, 11 (2018), 22–41
Citation in format AMSBIB
\Bibitem{BerLonNik18}
\by Irina~Berezinets, Yulia~Lonyagina, Natalia~Nikolchenko, Ekaterina~Zenkevich
\paper Coordination versus competition in supply chains
\jour Contributions to Game Theory and Management
\yr 2018
\vol 11
\pages 22--41
\mathnet{http://mi.mathnet.ru/cgtm320}
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