Scenario-based price negotiations vs. game theory in the optimization of coordinated supply chains
Document typeConference lecture
Rights accessRestricted access - publisher's policy
A scenario-based negotiation (SBN) win-to-win approach is proposed for the optimization of coordinated decentralized multi-site multi-product Supply Chains (SCs) in a competitive environment. Based on non-symmetric roles, the leader aims to settle its offer taking into account the uncertain reaction of the follower, which behavior is represented by a probability of acceptance. Different negotiation scenarios, based on considering Standalone, Cooperative, and Non-Cooperative SCs are analyzed for the negotiation, resulting in different MINLP tactical models, which are illustrated using a case study with different “follower” SCs around an industrial production SC “leader”. On the other hand, a Stackelberg non-cooperative bi-level MINLP game model is built and solved for the same case study. The Non-Cooperative Negotiation Scenario (NCNS) proves to be more adequate, leading to higher global profits expectations.
CitationHjaila, K., Puigjaner, L., Espuña, A. Scenario-based price negotiations vs. game theory in the optimization of coordinated supply chains. A: European Symposium on Computer Aided Process Engineering. "12th Intenational Symposium on Process Systems Engineering and 25th European Symposium on Computer Aided Process Engineering. Part A. Computer Aided Chemical Engineering, 37". Copenhagen: Elsevier, 2015, p. 1859-1864.