Game theoretic applications in supply chain management : a review
Document Type
Journal article
Source Publication
INFOR: Information Systems and Operational Research
Publication Date
8-1-2005
Volume
43
Issue
3
First Page
187
Last Page
220
Publisher
Taylor & Francis Inc.
Keywords
Supply chain management; non-cooperative and cooperative games
Abstract
Recent emphasis on competition and cooperation in supply chains has resulted in the resurgence of game theory as a relevant tool for analyzing such interactions in a supply chain. This paper presents a review of more than 130 papers concerned with game theoretical applications in supply chain management (SCM). We first give a brief summary of the basic solution concepts in noncooperative and cooperative games such as Nash and Stacokelberg equilibria, Nash arbitration scheme and cooperation with sidepayments, the core, the Shapley value and nucleolus. Our review of supply chain-related game theoretical applications is presented in five areas: (i) Inventory games with fixed unit purchase cost, (ii) Inventory games with quantity discounts, (iii) Production and pricing competition, (iv) Games with other attributes, (v) Games with joint decisions on inventory, production/pricing and other attributes. The paper concludes with a summary of our review, suggestions for potential applications of game theory in SCM and an alternative classification of all reviewed papers.
DOI
10.1080/03155986.2005.11732725
Print ISSN
03155986
E-ISSN
19160615
Publisher Statement
Copyright © 2006 Taylor & Francis Inc. Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Leng, M., & Parlar, M. (2005). Game theoretic applications in supply chain management: A review. INFOR: Information Systems and Operational Research, 43(3), 187-220. doi: 10.1080/03155986.2005.11732725