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

Subject Areas : Optimization

mahmood  darvish sefat ¹ (Ph.D. Student in Industrial Management, Production and Operations Orientation, Faculty of Management, Islamic Azad University, Firuzkuh Branch, Iran)
Javad  Rezaeian ² (Associate Professor, Department of Industrial Engineering, Mazandaran University of Science and Technology, Babol, Iran)
Mohammad Mahdi  Pourpasha 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.

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