Application of Game Theory to Supply Chain Management
We study the applications of game-theoretic models to supply chain management. A supply chain system has multiple agents often with conflicting objectives which necessitates its analysis to be made in a gametheoretic framework. We particularly focus on stochastic differential games as this framework is most suited for real-time supply chain systems that are almost ubiquitous in all modern manufacturing and/or logistic setups. A notion of partial cooperation is also captured in a hierarchical game structure. Existence and uniqueness of equilibrium strategies are discussed under various frameworks. Real-life examples with optimal strategies are also discussed.
Application of Game Theory to Supply Chain Management
Project Team: | Arnab Basu |
Sponsor: | SCM Centre |
Project Status: | Completed |
Area: | Decision Sciences |
Abstract: | We study the applications of game-theoretic models to supply chain management. A supply chain system has multiple agents often with conflicting objectives which necessitates its analysis to be made in a gametheoretic framework. We particularly focus on stochastic differential games as this framework is most suited for real-time supply chain systems that are almost ubiquitous in all modern manufacturing and/or logistic setups. A notion of partial cooperation is also captured in a hierarchical game structure. Existence and uniqueness of equilibrium strategies are discussed under various frameworks. Real-life examples with optimal strategies are also discussed. |