scholarly journals Supply chain collaboration: A Game-theoretic approach to profit allocation

2016 ◽  
Vol 9 (5) ◽  
pp. 1020
Author(s):  
Borja Ponte ◽  
Isabel Fernández ◽  
Rafael Rosillo ◽  
José Parreño ◽  
Nazario García
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Classical Solutions ◽  
Theoretic Approach ◽  
Supply Chain Collaboration ◽  
For Profit ◽  
Profit Allocation ◽  
Complex Process ◽  
Game Theoretic ◽  
The One

Purpose: This paper aims to develop a theoretical framework for profit allocation, as a mechanism for aligning incentives, in collaborative supply chains.Design/methodology/approach: The issue of profit distribution is approached from a game-theoretic perspective. We use the nucleolus concept. The framework is illustrated through a numerical example based on the Beer Game scenario.Findings: The nucleolus offers a powerful perspective to tackle this problem, as it takes into consideration the bargaining power of the different echelons. We show that this framework outperforms classical alternatives.Research limitations/implications: The allocation of the overall supply chain profit is analyzed from a static perspective. Considering the dynamic nature of the problem would be an interesting next step. Practical implications: We provide evidence of drawbacks derived from classical solutions to the profit allocation problem. Real-world collaborative supply chains need of robust mechanisms like the one tackled in this work to align incentives from the various actors.Originality/value: Adopting an efficient collaborative solution is a major challenge for supply chains, since it is a wide and complex process that requires an appropriate scheme. Within this framework, profit allocation is essential.

scholarly journals The Optimal Production Decision of Competing Supply Chains When Considering Green Degree: A Game-Theoretic Approach

2020 ◽  
Vol 12 (18) ◽  
pp. 7413
Author(s):  
Jiguang Wang ◽  
Jianhong Chang ◽  
Yucai Wu
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Wholesale Price ◽  
Dominant Strategy ◽  
Green Product ◽  
Theoretic Approach ◽  
Optimal Production ◽  
Supply Chain Competition ◽  
Game Theoretic ◽  
The Difference

Nowadays, the green supply chain has become an exciting concept in academic societies. This paper focuses on the optimal production decisions of two competing supply chains from the perspective of green degree. The manufacturers in each supply chain have two options—producing a green product or a non-green product. Game theory is applied to study four decision scenarios, which are derived from the difference in the products of the two supply chains. This study investigates the influence of inter-supply-chain competition on the wholesale price, green degree, and profits of the supply chain members. The results indicate that the inter-supply-chain competition has a negative correlation with the wholesale price. The inter-supply-chain competition has a significant impact on green degree in the four decision scenarios. In addition, green products are not always the dominant strategy of manufacturers. Both the competitors’ product decisions and the degree of inter-supply-chain competition should be considered. Finally, weak inter-supply-chain competition is beneficial to the leader supply chain, while strong competition is beneficial to the follower supply chain.

scholarly journals Developing Fair Investment Plans to Enhance Supply Chain Visibility Using Cooperative Games

2019 ◽  
Vol 11 (11) ◽  
pp. 3209 ◽  
Author(s):  
Changhyun Kim ◽  
KwangSup Shin
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Theoretic Approach ◽  
Sustainable Supply Chain ◽  
Information Communication ◽  
Collaborative Game ◽  
Game Theoretic ◽  
Feasible Solutions ◽  
The Individual ◽  
The Impact

As supply chains become more complex and globalized, the individual participants of the supply chains should invest in systems based on information communication technologies (ICT) such as the remote frequency identification device (RFID) with tags that secure the visibility of the entire supply chain. In addition, the level of visibility, such as the container, pallet, carton, and box, should be determined for each participant to optimize its own profit function. By using a collaborative game scheme, the present study illustrates the relationships among participants who invest to a certain level of visibility, and then how much value each participant gets. To find feasible solutions, a genetic algorithm-based mechanism is devised for modeling various fitness functions considering the total profit and benefit to cost (B/C) ratio. The proposed framework considers the relationship among participants, as well as the impact from the enhanced visibility, and it may be possible to make fair and rational decisions for all participants based on the quantitative metrics such as the B/C ratio. In this paper, we propose a novel method based on the game-theoretic approach where the enhanced visibility prevents a certain participant from taking most of the benefit. It seems possible to establish a long-term sustainable supply chain visibility by distributing profit fairly to all participants in the supply chain.

scholarly journals Legal-economic barriers to price transfers in food supply chains

2012 ◽  
Vol 6 (1-2) ◽  
pp. 27-33 ◽  
Author(s):  
Harry Bremmers ◽  
Bernd Van der Meulen ◽  
Zorica Sredojevi ◽  
Jo Wijnands
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Supply ◽  
Value Added ◽  
Price Volatility ◽  
Retail Sector ◽  
The European Union ◽  
Food Supply Chains ◽  
Industry Policy ◽  
The One

Recent price movements have put food supply chains under pressure. On the one side, upward price tendencies on commodity markets result in higher costs to processing firms. On the other side, these firms are confronted with a strong retail sector that is able to prevent compensation to protect consumers’ and own economic interests. Regulatory impediments of European law, especially with respect to foodstuffs, can adversely be utilized as barriers to protect the interest downstream the supply chain. The problem is that legal-economic instruments which can serve to smooth price volatility in supply markets can also opportunistically be used at the expense of the middlesection in food supply chains (i.e., mainly small and medium sized producers). The aim of this article is to identify the legal-economic mechanisms that effect price transfers in food supply chains in the European Union and define policy adjustments to improve pricing mechanisms, while safeguarding the interests of the processing industry. Policy alternatives to improve the smooth functioning of notably intermediate markets in food supply chains are the restructuring of competition law, improved processor information management and creating transparency of value added in the supply chain by means of labelling devices.

scholarly journals Supply Chain Resilience: Unleashing the Power of Collaboration in Disaster Management

2021 ◽  
Vol 13 (19) ◽  
pp. 10573
Author(s):  
Muhammad Umar ◽  
Mark Wilson
Keyword(s):  
Supply Chain ◽  
Rural Communities ◽  
Supply Chains ◽  
Natural Disasters ◽  
Food Supply ◽  
Supply Chain Collaboration ◽  
Supply Chain Resilience ◽  
Food Supply Chains ◽  
Study Approach ◽  
Multiple Case

This study builds on the extant literature of supply chain collaboration, specifically, vertical and horizontal collaboration, and examines how these capabilities influence the resilience of supply chains that experience regular natural disasters in rural communities, as their economic wellbeing relies heavily on the continuation of these supply chains. A multiple case study approach has been adopted to investigate the role of collaboration within food supply chains of two different South Asian regions. This context was selected because these regions are prone to regular natural disruptions, and these food supply chains also play a crucial role in the disaster relief process. The data revealed that effective communication, mutual dependence, information sharing, informal financial support, and trust are some of the components of supply chain collaboration that enhance the overall resilience of supply chains in natural disasters.

scholarly journals Supply chain performance attributes for the fast moving consumer goods industry

2011 ◽  
Vol 5 (1) ◽  
Author(s):  
Madhu Bala ◽  
Dinesh Kumar
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Consumer Goods ◽  
Fast Moving ◽  
Research Paper ◽  
Supply Chain Performance ◽  
Product Categories ◽  
Fast Moving Consumer Goods ◽  
Operational Models ◽  
The One

This research paper identifies the supply chain performance attributes that are relevant to the Fast Moving Consumer Goods (FMCG) industry. The FMCG supply chains are analysed from the perspective of processes, components and typology. The typical issues faced by the FMCG supply chains are also explored. Three supply chain operational models are compared and identify SCOR as the one best suited for the FMCG industry. The survey, conducted with the respondents from four research cases across two product categories, demonstrates the acceptance and the usage of the performance attributes for the FMCG supply chains. The results also include the analysis of the typology of the research cases across two product categories.

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