A game theoretic analysis in capacity-constrained supplier-selection and cooperation by considering the total supply chain inventory costs

Davood Mohammaditabar, Seyed Hassan Ghodsypour and Ashkan Hafezalkotob

International Journal of Production Economics, 2016, vol. 181, issue PA, 87-97

Abstract: The first models of supplier selection were based on maximizing buyer׳s interests. Recently, with the growing attention towards supply chain competition and vertical coordination, some researchers propose models that select suppliers based on total supply chain cost. These models usually consider a centralized system to tackle the problem of proper incentives for members in cooperation. Our purpose in this paper is to analyze the selected suppliers and prices that are agreed on in decentralized supply chains. Also we aim to study the conditions in which the selected suppliers are in the benefit of total supply chain. We use the inventory related costs to calculate payoff function of buyer and suppliers.

Keywords: Supplier selection; Decentralized supply chain optimization; Buyer–vendor coordination; Game theory; Inventory management (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:181:y:2016:i:pa:p:87-97

DOI: 10.1016/j.ijpe.2015.11.016

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