Scenario-based dynamic negotiation for the coordination of multi-enterprise supply chains under uncertainty

Abstract

A novel Scenario-Based Dynamic Negotiation approach is proposed for the coordination of decentralized Supply Chains under uncertainty. The relation between the involved organizations (client, provider and third parties) and their respective conflicting objectives is captured through a non-zero-sum and non-symmetric roles SBDN negotiation. The client (leader) designs coordination agreements considering the uncertain reaction of the provider (follower) resulting from the uncertain nature of the third parties, which is modeled as a probability of acceptance. Different negotiation scenarios are studied: i) Cooperative, and ii) Non-Cooperative and iii) Standalone cases. The use of the resulting models is illustrated through a case study with different vendors around a "leader" (client) in a decentralized scenario. Although the usual cooperation hypothesis will allow higher overall profit expectations, using the proposed approach it is possible to identify non-Cooperative scenarios with high individual profit expectations which are more likely to be accepted by all partners.

Integrated game-theory modelling for multi enterprise-wide coordination and collaboration under uncertain competitive environment

“…To illustrate the practicality of the proposed integrated-GT approach, the resulting MINLP models are implemented and solved for a case study adapted from Hjaila et al, (2016a) in order to compare the obtained results.…”

“…The dynamic competitive nature of the Supply Chain (SC) underscores the interest of the Process System Engineering (PSE) and Operations Research (OR) communities in the SC optimization considering all participants (decentralized decision-making). Such approach should take into consideration individual and global objectives in order to achieve the Enterprise-Wide Optimization (EWO) (Hjaila et al, 2015(Hjaila et al, , 2016a. A SC is a set of entities distributed along different sites to produce intermediate/final products for other SCs and/or final markets (Figure 1).…”

“…When the tactical decisions of a SC are synchronized under a common objective function of a single enterprise, a centralized SC takes place (Hjaila et al, 2016b). However, a decentralized SC network takes place when the SC entities belong to different enterprises, the tactical decisions have to be synchronized under the different goals set by the different enterprises involved (Hjaila et al, 2016a). A decentralized SC is represented in Figure 1.…”

Decentralized supply chain network design: monopoly, duopoly and oligopoly competitions under uncertainty

“…Also this is usually related to operational characteristics and leads to Nash game; most of the dynamic games in SC literature are unconstrained models that solved by differential systems (Xiao and Yang 2008;Zhang 2006;Dias 2010, 2013;Sinha and Sarmah 2010;Friesz et al 2011, Jain et al 2014Chen et al 2015;Nagurney et al 2015;Mousavi et al 2016;Santibanez-Gonzalez and Diabat 2016;Hjaila et al 2016a;Jahangoshai Rezaee et al 2017;Lipan et al 2017). (3) Competition with foresight: in this competition, the rivals show reactions to the entry of new comer in sequential manner and usually this is related to strategic characteristics; this competition leads to bilevel or multi-level models and stackelberg games (Drezner and Drezner 1998;Plastria and Vanhaverbeke 2008;Kucukaydın et al 2011, Zhang and Liu 2013Yue and You 2014;Zhu 2015;Drezner et al 2015;Taleizadeh and Charmchi 2015;Yang et al 2015, Esmaeilzadeh andTaleizadeh 2016;Hjaila et al 2016b;Aydin et al 2016;Ezimadu and Nwozo 2017;Genc andGiovanni 2017. Eiselt andLaporte 1997;Krass and Pesch 2012 have done a review of this kind of competition.…”

Emerging supply chain of utilising electrical vehicle retired batteries in distributed energy systems

“…To address knowledge gaps, we propose an integrative framework to model the emerging supply chains and design strategies for reusing the retired EV batteries in DES. By coupling game theory approach [23][24][25] and DES design optimisation [26][27][28] , the interaction of supply chain nodes, including government agencies, EV and battery manufacturing sectors, DES sectors, and dismantling and recycling (D&R) sectors are modelled. Developing a case study on retired EV battery applications in China, we demonstrate the new insights such modelling framework can generate to inform decision-making on economic and technique aspects of utilising EV retired batteries in DES applications.…”