Designing Leadership models in a Three Level Unlimited Supply Chain: Non-Cooperative Game Theory Approach

Abstract

The role and importance of supply chain management, has faced with many challenges and problems. Although a comprehensive model of supply chain issues, has not been explained, we have to indicate that issues such as reviewing the theoretical foundations of information systems, marketing, financial management, logistical and organizational relations have been considered by many researchers. The objective of supply chain management is to improve various activities and components to increase overall supply chain system benefits. In order to achieve the overall objectives, many contradictions may occur between the components and different levels of supply chain and the contradictions that these disorders over time, result in decreased strength and competitiveness of the supply chain. Such conflicts, like marketing costs (advertising), pricing and inventory can occur during the supply chain life cycle. A Game Theory approach with respect to property is the appropriate tool for collaboration in the supply chain. This tool is used for collaborative making in any kind of supply chain such as cooperative supply chain and non-cooperative supply chain. In the present study and assuming a lack of cooperation between different levels of a supply chain, a dynamic game with complete information has been generated. In addition identifying appropriate leaders of various levels of the supply chain is considered. Non-Cooperative dynamic game mode (Stackelberg Game), for each of the three levels of supply chain including retailers, suppliers and manufacturers are modeled. Depending on the bargaining power and its position in the market, any level of supply chain can make a leader of the following rule. In the present study, the equilibrium model to play Stackelberg game may be led by a leader or leading players and ultimately identifying and modeling the appropriate unlimited three level supply chain are determined.

Keywords

• Non-cooperative dynamic game
• Supply chain
• Supply chain collaboration
• Stackelberg game
• Game theory