Cooperation in an Arrow-Karlin Type Supply Chain

Dobos, Imre (2023) Cooperation in an Arrow-Karlin Type Supply Chain. Corvinus Journal of Sociology and Social Policy, 14 (1). pp. 107-129. DOI

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In this paper we apply cooperative game theory concepts to analyze vertical supply chains. The bullwhip effect in a two-stage supply chain (supplier-manufacturer) in the framework of the Arrow-Karlin model with linear-convex cost functions is considered. It is assumed that both firms minimize their relevant costs, and two cases are examined: the supplier and the manufacturer minimize their relevant costs in a decentralized and in a centralized (cooperative) way. The question of how to share the savings of the decreased bullwhip effect in the centralized (cooperative) model is answered by transferable utility cooperative game theory tools.

Item Type:Article
Uncontrolled Keywords:optimal control, supply chain, bullwhip effect, cooperative game theory
ID Code:9214
Deposited By: Alexa Horváth
Deposited On:05 Oct 2023 09:30
Last Modified:05 Oct 2023 09:30

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