Coordination Versus Competition in Supply Chains

Authors

  • Irina Berezinets Saint Petersburg State University
  • Yulia Lonyagina Saint Petersburg State University

Abstract

This paper considers the problem of coordination in supply networks. The model is based on distribution network, which includes several manufactures, single distributor and multi retailers, operated and competed in consumer markets that are functioning according to the Cournot model with the linear demand. All participants in a chain are trying to maximize their profit. For coordination solution the maximization flow model was developed. We used the the perfect Nash equilibrium in the multi-step hierarchical game in the closed form for competitive model. The comparative analysis of coordination and competition in distribution network was carried out. The obtained results demonstrated advantages and disadvantages of the developed model. Numerical example for the network justified the necessity of applying additional coordination mechanisms to achieve better results for all members of the network.

Keywords:

supply chain management, coordination, perfect Nash equilibrium, maximum flow problem, distribution network

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References

Akkermans, H. A., Bogerd, P., Yucesan, E., and van Wassenhove, L. N. (2003). The impact of ERP on supply chain management: Exploratory findings from a European Delphi study. European Journal of Operational Research, 146(2), 284–301.

Anupindi, R. and Bassok, Y. (1999). Supply contracts with quantity commitments and stochastic demand. Quantitative Models for Supply Chain Management, Boston et al., 197–232.

Arshinder, K., Kanda, A., and Deshmukh, S. G. (2011). A review on supply chain coordination: Coordination mechanisms, managing uncertainty and research directions. Supply Chain Coordination under Uncertainty, Springer-Verlag Berlin Heidelberg, 39–82.

Beamon, B. M. (1998). Supply chain design and analysis: Models and methods. International Journal of Production Economics, 55(3), 281–294.

Published

2022-04-10

How to Cite

Berezinets, I., & Lonyagina, Y. (2022). Coordination Versus Competition in Supply Chains. Contributions to Game Theory and Management, 11. Retrieved from https://gametheory.spbu.ru/article/view/13224

Issue

Vol. 11 (2018)

Section

Articles

License

Articles of "Contributions to Game Theory and Management" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.