A three-level supply chain with warranty services, pricing and marketing decisions

2019 ◽  
Vol 14 (3) ◽  
pp. 686-716 ◽  
Author(s):  
Ata Allah Taleizadeh ◽  
Mahtab Sherafati
Keyword(s):  
Game Theory ◽  
Cooperative Games ◽  
Maintenance Cost ◽  
Theory Approach ◽  
Content Type ◽  
Agent Based ◽  
Warranty Period ◽  
Service Contracts ◽  
The Game Theory ◽  
Optimal Maintenance

Purpose This paper aims to present various three-level service contracts among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Design/methodology/approach Three-echelon supply chains with marketing and warranty services are studied. Game-theoretic approaches (non-cooperative and cooperative) are presented. The non-cooperative approaches are static (NE) and dynamic (Stakelberg) models. The cooperative approach is related to bargaining models (Nash bargaining games). The authors develop a sensitivity analysis of some parameters and their effect. Findings Based on the mentioned drawbacks (i.e. lack of a model containing warranty, marketing and pricing), despite their importance, a developed model is proposed in this research to cover one of the research gaps. In addition, main contributions of this paper that differentiate it from the existing papers are regarding inventory, lost sale and lost goodwill, which are significant in the comparison environment. Another advantage of this study is related to the solution approach, the game theory. Twofold of the games theoretical, i.e. cooperative (in three forms) and non-cooperative are considered, because of their importance. Three types of non-cooperative games are presented as follows: Nash equilibrium – each echelon decides respectively and simultaneously; manufacturer-Stackelberg – the manufacturer has more power than the agent and the agent has more power than the customer; and customer-Stackelberg – customer is leader of the agent and the agent is the leader of manufacturer. The involved cooperative game in this paper is the bargaining problem that the participants can determine how to share the additional profits. Originality/value In this paper, various three-level service contracts will be presented among the following three participants: a manufacturer, an agent and a customer. The interaction between the aforementioned participants will be modeled using the game theory approach. Under non-cooperative and cooperative games, the optimal sale price, warranty period and warranty price for the manufacturer and the optimal maintenance cost (repair cost) and marketing expenditure for the agent are obtained by maximizing their profits. The satisfaction of the customer is also maximized by being able to choose one of the suggested options from the manufacturer and the agent, based on the risk parameter. Several numerical examples are used to illustrate the models presented in this paper. Finally, the authors develop a sensitivity analysis of some parameters and their effects on the objective functions.

A STOCHASTIC MODEL FOR TRI-PARTITE SERVICE CONTRACTS

2013 ◽  
Vol 20 (02) ◽  
pp. 1350010 ◽  
Author(s):  
N. SHAMSI GAMCHI ◽  
M. ESMAEILI ◽  
M. A. SANIEE MONFARED
Keyword(s):  
Maintenance Cost ◽  
Repair Cost ◽  
Sale Price ◽  
Numerical Examples ◽  
Service Contract ◽  
Penalty Cost ◽  
Warranty Period ◽  
Service Contracts ◽  
Optimal Maintenance ◽  
First Time

Warranty as a kind of service contract plays a key role in business and legal transactions today. In this paper, we present for the first time a tri-partite service contract model including a manufacturer, an agent and a customer under risk parameter. We determine an optimal sale price, a warranty period and a warranty price for the manufacturer under quantity discount policies. The optimal maintenance cost or repair cost is obtained by the maximizing of an agent's profit according to the penalty cost incurred due to waiting time. Moreover, the customer maximizes his/her satisfaction by purchasing several products and choosing a portfolio of service contracts. Whereas the risk-aversion parameter on the customer side has an impact on their decision for choosing the type of service contract. On the other hand, the discount rate regime on the manufacturer side influences the number of purchased products. We present some numerical examples to illustrate the working logic of our model.

A game theory approach to selecting marketing-mix strategies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mansour Abedian ◽  
Atefeh Amindoust ◽  
Reza Maddahi ◽  
Javid Jouzdani
Keyword(s):  
Game Theory ◽  
Nash Equilibrium ◽  
Marketing Strategy ◽  
Equilibrium Model ◽  
Marketing Mix ◽  
Marketing Strategies ◽  
Theory Approach ◽  
Market Place ◽  
Content Type ◽  
The Game Theory

PurposeAdopting efficient marketing strategies is a challenging task in a competitive market place involving complex marketing planning, techniques and mechanisms to identify the best course of action under these circumstances and finding optimal solutions or stable outcomes. Decisions and strategies of competitors in the market influence the selection of the appropriate marketing strategy. The main purpose of this paper is to develop a mathematical methodology based on the game theory approach for planning optimal marketing-mix strategies in dynamic competitive markets, taking into account strategic foresight and interaction effects.Design/methodology/approachThe game theory approach, as a decision-making tool in conflict situations, is suggested for planning and adopting optimal marketing strategy. The main intellectual attraction of the game theory is essentially a question of how to act in gaming situations against highly rational opponents A kind of static, finite and non-cooperative game analytics approach has been developed for this issue, and the proposed model has been implemented to design optimal marketing strategies for two top brands of the automotive parts market in Iran.FindingsThe findings of this study show that the optimal marketing-mix strategy for brand A is pricing and for brand B is the product strategy.Practical implicationsGame theory and the Nash equilibrium model can provide a practical approach to find and adopt the right strategy, know competitors' movements and strategies and get more profit.Originality/valueThe integration of the game theory approach into the marketing mix framework has been adopted as a generalized model for marketing strategy planning and analysis as well as to resolve some shortcomings of the marketing mix framework. The Nash equilibrium model has been used to analyze the results. The incorporation of game theory into marketing models has the potential to enrich the scope of marketing modeling.

Simulation Aided Production Planning and Scheduling Using Game Theory Approach

2015 ◽  
Vol 809-810 ◽  
pp. 1450-1455 ◽  
Author(s):  
Damian Krenczyk ◽  
Malgorzata Olender
Keyword(s):  
Game Theory ◽  
Production Planning ◽  
Production Systems ◽  
Theory Approach ◽  
Planning And Scheduling ◽  
Operational Level ◽  
The Game Theory ◽  
Production Orders ◽  
Alternative Routes ◽  
Optimum Solution

In the paper the concept of using methods and models of the game theory to solve problems in the area of production planning and control is presented. The problems concerning selection of the most favorable routes from given circumstances and for available set of alternative routes in discrete multi-assortment production systems is presented. Considered in this paper the problems related to the allocation of adequate resources to carry out specific production plan of production orders. Combinatorial complexity of those problems is high especially at the operational level. Therefore heuristic or analytical methods are often used in the process of decision support, without indicating the optimum solution. Conducted research in this area are also related to AI methods. The proposed approach in this paper, is based on the game theory in the production planning. The tools of game theory have been used so far mainly in the area of production planning at the levels of strategic and tactical planning. But recently, arises increasingly interest in using game theory in the field of production planning at the operational level. In this case, the player term is replaced with the agent or object term that represents (not the entity or person as it is in the classical approach) production order, production process or package of production orders.

The Game Theory Approach for Solving the Hierarchical and Decentralized Bi-Level Problem

2013 ◽  
Author(s):  
Ehsan Ghotbi ◽  
Anoop K. Dhingra
Keyword(s):  
Game Theory ◽  
Numerical Approach ◽  
Theory Approach ◽  
Objective Functions ◽  
Nash Game ◽  
Multi Objective ◽  
The Game Theory ◽  
Level Problem ◽  
Upper Level ◽  
Rational Reaction Set

This paper presents a game theory approach to solve two types op problem, hierarchical and decentralized bi-level multi-objective problem with multiple objective functions at the upper level and multiple players at the lower level. The sensitivity based approach is applied for numerical approach. A sensitivity based algorithm is proposed to the Hierarchical and decentralized bi-level multi-objective problem. Two scenarios are studied in this paper for modeling the decentralized bi-level multi-objective problem. The first scenario considers the cooperative game as interaction between the players at upper level and the lower level individually. The interaction between the upper and lower level is considered as Stackelberg. On the second scenario, the interaction in the lower level is modeled by Nash game. The sensitivity based method has been used to provide an approximation to the rational reaction set (RRS) for each player. An alternate approach for generating the RRS based on design of experiments (DOE) combined with response surface methodology (RSM) is also explored. Two numerical examples are given to demonstrate the proposed algorithm for the both scenario. It is seen that the proposed sensitivity based approach is able to approximate non linear RRS. For the hierarchical approach, one numerical example is studied to show the application of the algorithm.

An integrated space-based building maintenance management model using multi-objective optimization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huthaifa AL-Smadi ◽  
Abobakr Al-Sakkaf ◽  
Tarek Zayed ◽  
Fuzhan Nasiri
Keyword(s):  
Residential Buildings ◽  
Maintenance Cost ◽  
Content Type ◽  
Fund Allocation ◽  
Building Maintenance ◽  
Window System ◽  
Optimal Maintenance ◽  
Building Condition ◽  
Maintenance Model

PurposeThe purpose of this study is to minimize cost and minimize building condition. Weibull distribution approach was employed to generate deterioration curves over time. The third floor of Concordia University’s Engineering And Visual Arts (EV) Complex in Montreal, Canada, served as a case study to test the maintenance model and determine the optimal maintenance activities to be performed.Design/methodology/approachThis research has demonstrated that there is insufficient fund allocation for the maintenance of non-residential buildings. Therefore, this research focused on designing and developing a maintenance optimization model that provides the type of spaces (architectural system) in a building. Sensitivity analysis was used to calculate weights to validate the model. Particle swarm optimization, based explicitly on multiple objectives, was applied for the optimization problem using MATLAB.FindingsFollowing 100 iterations, 13 non-dominant solutions were generated. Not only was the overall maintenance cost minimized, but the condition of the building was also maximized. Moreover, the condition prediction model demonstrated that the window system type has the most rapid deterioration in educational buildings.Originality/valueThe model is flexible and can be modified by facility managers to align with the required codes or standards.

Analysing Israel-Hamas Conflict Based on Game Theory Approach

2021 ◽  
Author(s):  
Abdullah Hamida ◽  
◽  
Yongsheng Jin ◽  
Keyword(s):  
Game Theory ◽  
Gaza Strip ◽  
Theory Approach ◽  
Regional Powers ◽  
Model Based ◽  
Proposed Model ◽  
The Game Theory ◽  
The Common ◽  
Resistance Movement ◽  
Israeli Defence Forces

ABSTRACT The Islamic Resistance Movement (AKA: Hamas) has taken control over Gaza Strip, Palestine, in 2007. Since then, the organization was in a continues hit-run conflict against the Israeli Defence Forces (IDF). The conflict is very resistant to any sort of resolution, and Hamas and Israel engage frequently in what it seems an endless cycle of resentment and violence. Despite numerous mediations by global and regional powers, this conflict appears to be further away than ever. This particular conflict can’t be addressed according to the common negotiation theories that based on rationality and hard politics, which seems not that functional. Instead, a model based on the game theory approach is presented in this study to explain this phenomenon. In this work, some facts about Israel - Hamas regional concerns are explained. Moreover, the study analyses the reasons behind Hamas enforcing calm in Gaza, even though Hamas considers Israel as its arch enemy. The presented model shows that whenever Israel and Hamas reach an agreement, both sides can collaborate in maintaining a state of calm. Moreover, results show that the proposed model is applicable to analyse a conflict in terms of actions, duration and terms of settlement. KEYWORDS: Israel; Israeli-Palestinian conflict; Hamas; Gaza strip; Game theory

How to Define Trust in Medical Consultation? A New Perspective With the Game Theory Approach

2012 ◽  
Vol 3 (8) ◽  
pp. 235-238
Author(s):  
Riva S Riva S ◽  
◽  
Alessandr Antonietti ◽  
Gabriella G Gabriella G
Keyword(s):  
Game Theory ◽  
Medical Consultation ◽  
Theory Approach ◽  
The Game Theory ◽  
New Perspective

Reliability analysis of CNC turning center based on the assessment of trends in maintenance data

2017 ◽  
Vol 34 (9) ◽  
pp. 1616-1638 ◽  
Author(s):  
Rajkumar Bhimgonda Patil ◽  
Basavraj S. Kothavale ◽  
Laxman Yadu Waghmode ◽  
Shridhar G. Joshi
Keyword(s):  
Reliability Analysis ◽  
Goodness Of Fit ◽  
Numerical Control ◽  
Maintenance Cost ◽  
Repairable Systems ◽  
Content Type ◽  
Cnc Turning ◽  
Warranty Period ◽  
Turning Center ◽  
Support Cost

Purpose The paper presents reliability, maintainability and life cycle cost (LCC) analysis of a computerized numerical control (CNC) turning center which is manufactured and used in India. The purpose of this paper is to identify the critical components/subsystems from reliability and LCC perspective. The paper further aims at improving reliability and LCC by implementing reliability-improvement methods. Design/methodology/approach This paper uses a methodology for the reliability analysis based on the assessment of trends in maintenance data. The data required for reliability and LCC analysis are collected from the manufacturers and users of CNC turning center over a period of eight years. ReliaSoft’s Weibull++9 software has been used for verifying goodness of fit and estimating parameters of the distribution. The LCC of the system is estimated for five cost elements: acquisition cost, operation cost, failure cost, support cost and net salvage value. Findings The analysis shows that the spindle bearing, spindle belt, spindle drawbar, insert, tool holder, drive battery, hydraulic hose, lubricant hose, coolant hose and solenoid valve are the components with low reliability. With certain design changes and implementation of reliability-based maintenance policies, system reliability is improved, especially during warranty period. The reliability of the CNC turning center is improved by nearly 45 percent at the end of warranty period and system mean time between failure is increased from 15,000 to 17,000 hours. The LCC analysis reveals that the maintenance cost, operating cost and support costs dominate the LCC and contribute to the tune of 87 percent of the total LCC. Research limitations/implications The proposed methodology provides an excellent tool that can be utilized in industries, where safety, reliability, maintainability and availability of the system play a vital role. The approach may be improved by collecting data from more number of users of the CNC turning centers. Practical implications The approach presented in this paper is generic and can be applied to analyze the repairable systems. A real case study is presented to show the applicability of the approach. Originality/value The proposed methodology provides a practical approach for the analysis of time-to-failure and time-to-repair data based on the assessment of trends in the maintenance data. The methodology helps in selecting a proper approach of the analysis such as Bayesian method, parametric methods and nonparametric methods.

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