A proposal of bargaining solution for cooperative contract in a supply chain

Wakana Kato (), Ikuo Arizono () and Yasuhiko Takemoto ()
Additional contact information
Wakana Kato: Okayama University
Ikuo Arizono: Okayama University
Yasuhiko Takemoto: Prefectural University of Hiroshima

Journal of Intelligent Manufacturing, 2018, vol. 29, issue 3, No 7, 559-567

Abstract: Abstract As a problem in supply chain management, the decision problem of terms and conditions of a contract between a supplier and a retailer is recognized commonly. The concept of cooperative bargaining between a supplier and a retailer is the key concepts to resolve this problem in the supply chain. Then, the bargaining evaluation function by Nash in the game theory exists as a tool to obtain the solution by cooperation bargaining. The Nash bargaining solution is derived under the premise that a power balance between a supplier and a retailer is equal. However, the situation where the power balance between a supplier and a retailer in actual bargaining is not equal is supposed frequently. For the purpose of reflecting the power balance in obtaining the bargaining solution, the concept of a general bargaining solution was proposed and then the general bargaining evaluation function for obtaining the general bargaining solution was devised. However, in the case of adopting the general bargaining evaluation function as a bargaining tool, some problems are included. In this article, we address the problems in the general bargaining solution. Then, we propose a new concept of bargaining process to obtain a solution under considering the existence of power balance between a supplier and a retailer.

Keywords: Supply chain management; Cooperative game theory; Nash bargaining solution (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s10845-015-1140-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joinma:v:29:y:2018:i:3:d:10.1007_s10845-015-1140-7

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10845

DOI: 10.1007/s10845-015-1140-7

Access Statistics for this article

Journal of Intelligent Manufacturing is currently edited by Andrew Kusiak

More articles in Journal of Intelligent Manufacturing from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().