Managing decentralized supply chain using bilevel with Nash game approach

Haque, Marjia; Paul, Sanjoy Kumar; Sarker, Ruhul; Essam, Daryl

doi:10.1016/j.jclepro.2020.121865

Cited by 20 publications

(6 citation statements)

References 57 publications

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“…Liu et al ( 2021b ) used bilateral matching game to study the investment of low-carbon emission reduction technology under carbon trading. Haque et al ( 2020 ) used Nash game to study the information sharing of decentralized supply chain in carbon emission reduction. Ding et al ( 2020 ) studied the influence of national carbon tax legislation on enterprise production decision with game model.…”

Section: Literature Reviewmentioning

confidence: 99%

Cooperative carbon emission reduction through the Belt and Road Initiative

Mao

Wang

2021

Environ Sci Pollut Res

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Carbon emission reduction under the Belt and Road Initiative has great significance on China’s goal of carbon peak. To better promote carbon emission reduction, based on the background of the Belt and Road Initiative, this paper analyzes the collaborative carbon emission reduction through investment between Chinese enterprises and local enterprises in developing countries along the Belt and Road Initiative. Considering the efforts of enterprises in carbon reduction, low-carbon infrastructure investment, and promotion of low-carbon products, this paper constructs a differential game model of collaborative carbon reduction cooperation between Chinese enterprises and local enterprises in developing countries along the Belt and Road Initiative. By horizontally comparing Nash non-cooperative mode, Stackelberg master-slave mode, and cooperative mode, the results shows that Chinese enterprises can encourage local enterprises in developing countries along the Belt and Road Initiative to coordinate carbon emission reduction through subsidies, which is Stackelberg master-slave mode. Under the cooperative mode, with the maximum carbon emission reduction efforts of both parties, the total benefit of carbon emission reduction reaches the optimal Pareto equilibrium. In addition, this paper also discusses the influence of related factors on the benefits of carbon emission reduction.

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Section: Literature Reviewmentioning

confidence: 99%

Cooperative carbon emission reduction through the Belt and Road Initiative

Mao

Wang

2021

Environ Sci Pollut Res

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“…However, all these studies were limited to two-stage SC scenarios, not multi-stage ones. In a recent study, Haque et al (2020b) proposed a bi-level model for a non-cooperative multi-stage SC but assumed upstream members as more powerful than downstream ones.…”

Section: Literature Reviewmentioning

confidence: 99%

A combined approach for modeling multi-echelon multi-period decentralized supply chain

et al. 2021

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In this paper, a multi-echelon, multi-period, decentralized supply chain (SC) with a single manufacturer, single distributor and single retailer is considered. For this setting, a twophase planning approach combining centralized and decentralized decision-making processes is proposed, in which the first-phase planning is a coordinated centralized controlled, and the second-phase planning is viewed as independent decentralized decision-making for individual entities. This research focuses on the independence and equally powerful behavior of the individual entities with the aim of achieving the maximum profit for each stage. A mathematical model for total SC coordination as a first-phase planning problem and separate ones for each of the independent members with their individual objectives and constraints as second-phase planning problems are developed. We introduce a new solution approach using a goal programming technique in which a target or goal value is set for each independent decision problem to ensure that it obtains a near value for its individual optimum profit, with a numerical analysis presented to explain the results. Moreover, the proposed two-phase model is compared with a single-phase approach in which all stages are considered dependent on each other as parts of a centralized SC. The results prove that the combined two-phase planning method for a decentralized SC network is more realistic and effective than a traditional single-phase one.

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“…Bilevel optimization problems are commonly studied in supply chain management in the context of optimization schemes with two decision-makers, a leader and a follower, see, e.g., Yue and You ( 2017 ), as well as in the context of decentralized supply chains, see, e.g., Haque et al. ( 2020 ) or Hsueh ( 2015 ). In contrast, our model searches for the optimal production plan of a manufacturer in view of a reduction in the sequence of his own regrets.…”

Section: Introductionmentioning

confidence: 99%

Modeling and mitigating supply chain disruptions as a bilevel network flow problem

2022

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Years of globalization, outsourcing and cost cutting have increased supply chain vulnerability calling for more effective risk mitigation strategies. In our research, we analyze supply chain disruptions in a production setting. Using a bilevel optimization framework, we minimize the total production cost for a manufacturer interested in finding optimal disruption mitigation strategies. The problem constitutes a convex network flow program under a chance constraint bounding the manufacturer’s regrets in disrupted scenarios. Thus, in contrast to standard bilevel optimization schemes with two decision-makers, a leader and a follower, our model searches for the optimal production plan of a manufacturer in view of a reduction in the sequence of his own scenario-specific regrets. Defined as the difference in costs of a reactive plan, which considers the disruption as unknown until it occurs, and a benchmark anticipative plan, which predicts the disruption in the beginning of the planning horizon, the regrets allow measurement of the impact of scenario-specific production strategies on the manufacturer’s total cost. For an efficient solution of the problem, we employ generalized Benders decomposition and develop customized feasibility cuts. In the managerial section, we discuss the implications for the risk-adjusted production and observe that the regrets of long disruptions are reduced in our mitigation strategy at the cost of shorter disruptions, whose regrets typically stay far below the risk threshold. This allows a decrease of the production cost under rare but high-impact disruption scenarios.

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Managing decentralized supply chain using bilevel with Nash game approach

Cited by 20 publications

References 57 publications

Cooperative carbon emission reduction through the Belt and Road Initiative

Cooperative carbon emission reduction through the Belt and Road Initiative

A combined approach for modeling multi-echelon multi-period decentralized supply chain

Modeling and mitigating supply chain disruptions as a bilevel network flow problem

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