469123 Optimal Decision-Making of Decentralized Multi-Participant Multi-Period Supply Chains under Uncertainty
Accordingly, this work proposes a generic bi-level model based on a non-cooperative non-zero sum non-symmetric role negotiation approach which has been extended from Game Theory. The main purpose is to state the best conditions for long-term expected win-win coordination/collaboration contracts. Different net payoff scenarios which compare the principal game player with the standalone case are analyzed. This analysis is carried out considering the capacity uncertainty of one of the partners, and their effect on the optimal strategic and tactical decisions of each enterprise are evaluated until the best compromise between their long term payoffs is reached. A penalty cost is proposed as if one of the contract options (e.g., quantity demanded at the short-term) reaches a maximum, so as to avoid risks or disruptions in the other player’s SC. As a result, a set of long-term coordination contracts, including the annual resources (flows among the game players, the unit transfer price, and the penalty) is proposed to cope with the different risk-behavior decision-makers.
The proposed approach and its potential are demonstrated using a case study based on a multi-product multi-period global SC, which is analyzed from the points of view of different participants. The proposed generic collaboration model is flexible enough to allow dealing with all possible links between the enterprises SCs nodes. It supports strategic and tactical decisions such as best locations and capacities for new facilities, capacity expansions, equipment technology, raw material acquisition, production, storage, and distribution programs, etc. The results show how the tradeoff between the payoffs of the enterprises involved affects the strategic and tactical decisions of the whole system, thus stressing the necessity of considering this wider view of the different enterprises’ options in order to improve the enterprise-wide coordination.
Acknowledgements: Financial support from the Generalitat de Catalunya (AGAUR FI program and grant 2014-SGR-1092-CEPEiMA) is fully appreciated.
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