Designing an Optimal Selection Model of Transportation Network in A Multi-level Supply Chain Using Game Theory

Subject Areas : Optimization

mahmood darvish sefat ¹ , Javad Rezaeian ² , Mohammad Mahdi Pourpasha ³

1 - Ph.D. Student in Industrial Management, Production and Operations Orientation, Faculty of Management, Islamic Azad University, Firuzkuh Branch, Iran
2 - Associate Professor, Department of Industrial Engineering, Mazandaran University of Science and Technology, Babol, Iran
3 - Assistant Professor, Department of Mathematics, Islamic Azad University, Chalus Branch, Iran

Received: 2022-12-22 Accepted : 2023-03-04 Published : 2023-07-01

Keywords: Game Theory, Transportation model, Multi-level Supply Chain,

Abstract :

Modern organizations’ strategy is reducing inventory, production cycle time, transportation cost, quality cost, while increasing competitiveness to maximize its benefits. Supply chain management, as part of an organization’s strategy, involves several stakeholders with different interests, each controlling part of the chain and pursuing different goals. This paper presents a comprehensive multi-level model of a supply chain consisting of several simultaneous stakeholders in a systematic way. The developed model first, consider the various transportation factors, such as distribution of goods for various members of the supply chain to achieves the lowest transportation cost at different levels, for both transporting parts and products. The model also provides lowest costs of purchase and production by considering the costs of maintenance, supply shortages and shortage, for all the involved parties. In addition, a competition in the context of a game to select the optimal situation between the stakeholders of the supply chain has been considered to make the best decision in terms of a participatory game by considering different scenarios. Through applying the principles of the game theory, various scenarios were developed to optimize the benefits of parties and to achieve the optimal design. The results of a numerical example showed that the answer provided by the game theory for the value of the objective function was less than the answers of the transport problem, despite the deficit penalty. Therefore, it can be concluded that game theory can achieve a better answer by considering the conditions of alliance between participants in a collaborative game.

References:

1. Adabi, F., kheirkhah.S., tavakoli moghadam.R. (2022). Modeling the Distribution and Production Game in the Green Production Routing Problem, Using Bi-Level Fuzzy Goal Programming Approach. Quarterly Journal of Transportation Engineering. Doi:22119/JTE.2021.279476.2521 (In Persian)


2. Asghari,N., Eshaghi gorji,M., Abounoori,E. (2019). Modeling budget distribution in Iran using game theory. Quarterly Journal of Modeling of Econometrics, vol. 2,133-153. Doi: 22075/jem.2019.15828.1209 (In Persian)


3. Chakraborty, P., Poddar,M. (2020). Role of multiple stakeholders in value co-creation and effects on medical tourism. Jindal Journal of Business Research. Doi: 1177/2278682120908552.


4. Ehsani, A., Mehrmanesh,H.(2021). A Conceptual Model for Evaluation the Impact Factors Affecting Organizational Performance in Supply Chain. . Journal of System Management, 6(4), pp. 269-294. Doi: 30495/jsm.2021.1919526.1425.


5. Farjana,N., (2020). Developing models and algorithms to design a robust inland waterway transportation network under uncertainty. Mississippi State University. https://hdl.handle.net/11668/18468.


6. Jafari,H. (2022). A game-theoretic approach to select a channel for supplying required materials in producing a product manufactured from recyclables, Journal of Decisions and Operations Research, Doi:https://doi.org/10.22105/dmor.2023.353181.1644 (In Persian)


7. Kannan,D. (2017). Role of multiple stakeholders and the critical success factor theory for the sustainable supplier selection process. International Journal of Production Economics. Doi: 10.1016/j.ijpe.2017.02.020.


8. Lima, C., Relvas,S., Barbosa-Póvoa,A.P.F.D.(2016). Downstream oil supply chain management: A critical review and future directions. Comput Chem Eng. vol. 92, pp. 78-92. Doi: 1016/J.COMPCHEMENG.2016.05.002.


9. Mahmoudi,R. (2019). Designing a sustainable urban transportation network using data envelopment analysis and game theory. Industrial Engineering PHD Thesis, Isfahan University of Technology, Faculty of Industrial and Systems Engineering. (In Persian) Doi: http://library.iut.ac.ir/dL/search/default.aspx?Term=14923&Field=0&DTC=107


10. Marzban,Sh., Shafiee,M., Mozaffari,M.(2022). Four-stage Supply Chain Design for Perishable Products and evaluate it by Considering the Triple Dimensions of Sustainability. Journal of System Management, 8(4), pp. 109-132. Doi: 30495/JSM.2022.1966734.1684.


11. Ming-Hsiang Chen, Haixiang Wei, Min Wei, Haiyu Huang, Ching-Hui (Joan) Su. (2021). Modeling a green supply chain in the hotel industry: An evolutionary game theory approach. International Journal of Hospitality Management, 92, 102716. Doi: 1016/j.ijhm.2020.102716.


12. Mohammadi, H.R., Ehtesham Rasi,R.(2022). Multi‐Objective Mathematical Model for Locating Flow Optimization Facilities in Supply Chain of Deteriorating Products. Journal of System Management, 8(1), pp. 51‐ Doi: 10.30495/JSM.2022.1911221.1468.


13. Salimi, P., Edalatpanah,SA. (2020). Supplier selection using fuzzy AHP method and D-numbers. Journal of fuzzy Extension and Applications. 1. 1-14. Doi: 22105/jfea.2020.248437.1007.281500.


14. You Fengqi, Gao Jiyao. (2018). A stochastic game theoretic framework for decentralized optimization of multi-stakeholder supply chains under uncertainty.Computers and Chemical Engineering, S0098-1354(18)30476-9, May 2018, CACE 6115. Doi: 1016/j.compchemeng.2018.05.016.


15. Zimmer, K., Fröhling,M., Schultmann,F. (2016). Sustainable supplier management–A review of models supporting sustainable supplier selection, monitoring and development. International Journal of Production Research 54 (5): 1412–1442. Doi:1080/ 0207543.2015.1079340.