Game theoretic applications in supply chain management : a review

Mingming LENG, Mahmut PARLAR

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

114 Citations (Scopus)

Abstract

Recent emphasis on competition and cooperation in supply chains has resulted in the resurgence of game theory as a relevant tool for analyzing such interactions in a supply chain. This paper presents a review of more than 130 papers concerned with game theoretical applications in supply chain management (SCM). We first give a brief summary of the basic solution concepts in noncooperative and cooperative games such as Nash and Stacokelberg equilibria, Nash arbitration scheme and cooperation with sidepayments, the core, the Shapley value and nucleolus. Our review of supply chain-related game theoretical applications is presented in five areas: (i) Inventory games with fixed unit purchase cost, (ii) Inventory games with quantity discounts, (iii) Production and pricing competition, (iv) Games with other attributes, (v) Games with joint decisions on inventory, production/pricing and other attributes. The paper concludes with a summary of our review, suggestions for potential applications of game theory in SCM and an alternative classification of all reviewed papers.
Original languageEnglish
Pages (from-to)187-220
Number of pages34
JournalINFOR: Information Systems and Operational Research
Volume43
Issue number3
DOIs
Publication statusPublished - 1 Aug 2005

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Supply chain management
Supply chain
Pricing
Game theory
Side payments
And supply chain management
Shapley value
Nash equilibrium
Solution concepts
Costs
Interaction
Non-cooperative game
Cooperation and competition
Quantity discount
Cooperative game
Purchase
Nucleolus
Inventory/production
Arbitration

Keywords

  • Supply chain management; non-cooperative and cooperative games

Cite this

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Game theoretic applications in supply chain management : a review. / LENG, Mingming; PARLAR, Mahmut.

In: INFOR: Information Systems and Operational Research, Vol. 43, No. 3, 01.08.2005, p. 187-220.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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