A Mathematical Model for Resource Sharing with Bilateral Contracts in a Supply Chain with Government Intervention under a Game Theory Approach

Document Type : Original Article

Authors

1 Department of Industrial Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran

2 School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

3 Research Center of Performance and Productivity Analysis, Istinye University, Istanbul, Turkey

4 School of Industrial Engineering, South Tehran Branch, Islamic Azad University, Tehran, Iran

Abstract

Contracts have been used for coordination in many supply chain alliances among businesses. Because bilateral contracts are significantly more successful and profitable than uni-contracts, In this article, the issues of implementing bilateral contracts are investigated with the approach of game theory and government intervention to increase bilateral interaction between members of co-production and co-distribution in the supply chain. By adopting the game theory model between these two members of the chain and intervention government, this research seeks to increase production and distribution by making maximum use of the excess capacity of production and distribution in the chain. In this way, the producer uses his surplus capacity in two ways: one is produced directly by the producer and enters the market by the distributor, and the other is an order that the distributor gives to the producer, which is different from the product that the producer produces. It is produced directly and given by the distributor. The purpose of this research is to investigate and analyze the amounts and profits resulting from the participation of production and distribution with government intervention in the supply chain. According to this research, governments should provide an environment for supply chain members to have more cooperation with each other because, in the case of cooperation among supply chain members, the profits of the chain and the members will increase.

Graphical Abstract

A Mathematical Model for Resource Sharing with Bilateral Contracts in a Supply Chain with Government Intervention under a Game Theory Approach

Keywords

Main Subjects

References

  1. Mazinani M, Tavakkoli-Moghaddam R, Bozorgi-Amiri A. A Multi-objective Cash-in-transit Pollution-location-routing Problem Based on Urban Traffic Conditions. International Journal of Engineering, Transactions B: Applications. 2023;36(2):299-310. 10.5829/IJE.2023.36.02B.10
  2. Al-Saadi M. Coordination of Load and Generation Sides to Reduce Peak Load and Improve Arbitrage of Smart Distribution Grid. International Journal of Engineering, Transactions B: Applications. 2023;36(2):226-35. 10.5829/IJE.2023.36.02B.04
  3. Mostofi A. Select issues in designing license contracts of strategic alliances in the pharmaceutical supply chain: Open Access Te Herenga Waka-Victoria University of Wellington; 2022.
  4. Kanda A, Deshmukh S. Supply chain coordination: perspectives, empirical studies and research directions. International journal of production Economics. 2008;115(2):316-35. 10.1016/j.ijpe.2008.05.011
  5. Hoey L. Reclaiming the authority to plan: how the legacy of structural adjustment affected Bolivia’s effort to recentralize nutrition planning. World Development. 2017;91:100-12. 10.1016/j.worlddev.2016.10.016
  6. Einy-Sarkalleh G, Tavakkoli-Moghaddam R, Hafezalkotob A, Najafi S. Developing a Fuzzy Measurement of Alternatives and Ranking Compromise Solution Method for Determining Essential Barriers in Iranian Car Industry. International Journal of Engineering, Transactions A: Basics. 2023;36(1):90-7. 10.5829/IJE.2023.36.01A.11
  7. Roels G, Tang CS. Win-win capacity allocation contracts in coproduction and codistribution alliances. Management science. 2017;63(3):861-81. 10.1287/mnsc.2015.2358
  8. Rached M, Bahroun Z, Campagne J-P. Decentralised decision-making with information sharing vs. centralised decision-making in supply chains. International Journal of Production Research. 2016;54(24):7274-95. 10.1080/00207543.2016.1173255
  9. Lee S, Kumara S. Decentralized supply chain coordination through auction markets: Dynamic lot-sizing in distribution networks. International Journal of Production Research. 2007;45(20):4715-33. 10.1080/00207540600844050
  10. Yang H, Chen W. Retailer-driven carbon emission abatement with consumer environmental awareness and carbon tax: Revenue-sharing versus cost-sharing. Omega. 2018;78:179-91. 10.1016/j.omega.2017.06.012
  11. Asghari M, Afshari H, Mirzapour Al-e-hashem S, Fathollahi-Fard AM, Dulebenets MA. Pricing and advertising decisions in a direct-sales closed-loop supply chain. Computers & Industrial Engineering. 2022;171:108439. 10.1016/j.cie.2022.108439
  12. Heydari J, Govindan K, Jafari A. Reverse and closed loop supply chain coordination by considering government role. Transportation Research Part D: Transport and Environment. 2017;52:379-98. 10.1016/j.trd.2017.03.008
  13. Zheng X, Lin H, Liu Z, Li D, Llopis-Albert C, Zeng S. Manufacturing decisions and government subsidies for electric vehicles in China: a maximal social welfare perspective. Sustainability. 2018;10(3):672. 10.3390/su10030672
  14. Cao K, Xu X, Wu Q, Zhang Q. Optimal production and carbon emission reduction level under cap-and-trade and low carbon subsidy policies. Journal of cleaner production. 2017;167:505-13. 10.1016/j.jclepro.2017.07.251
  15. Xu X, Xu X, He P. Joint production and pricing decisions for multiple products with cap-and-trade and carbon tax regulations. Journal of Cleaner Production. 2016;112:4093-106. 10.1016/j.jclepro.2015.08.081
  16. Fathollahi-Fard AM, Hajiaghaei-Keshteli M, Tavakkoli-Moghaddam R, Smith NR. Bi-level programming for home health care supply chain considering outsourcing. Journal of Industrial Information Integration. 2022;25:100246. 10.1016/j.jii.2021.100246
  17. Hafezalkotob A, Alavi A, Makui A. Government financial intervention in green and regular supply chains: Multi-level game theory approach. International Journal of Management Science and Engineering Management. 2016;11(3):167-77. 10.1080/17509653.2015.1004202
  18. Hafezalkotob A. Competition of domestic manufacturer and foreign supplier under sustainable development objectives of government. Applied Mathematics and Computation. 2017;292:294-308. 10.1016/j.amc.2016.07.007
  19. Mahmoudi R, Rasti-Barzoki M. Sustainable supply chains under government intervention with a real-world case study: An evolutionary game theoretic approach. Computers & Industrial Engineering. 2018;116:130-43. 10.1016/j.cie.2017.12.028
  20. Fathalikhani S, Hafezalkotob A, Soltani R. Government intervention on cooperation, competition, and coopetition of humanitarian supply chains. Socio-Economic Planning Sciences. 2020;69:100715. 10.1016/j.seps.2019.05.006
  21. Javadi T, Alizadeh-Basban N, Asian S, Hafezalkotob A. Pricing policies in a dual-channel supply chain considering flexible return and energy-saving regulations. Computers & Industrial Engineering. 2019;135:655-74. 10.1016/j.cie.2019.06.014
  22. Hadi T, Chaharsooghi SK, Sheikhmohammady M, Hafezalkotob A. Pricing strategy for a green supply chain with hybrid production modes under government intervention. Journal of Cleaner Production. 2020;268:121945. 10.1016/j.jclepro.2020.121945
  23. Hafezalkotob A. Modelling intervention policies of government in price-energy saving competition of green supply chains. Computers & Industrial Engineering. 2018;119:247-61. 10.1016/j.cie.2018.03.031
  24. Liu Z, Qian Q, Hu B, Shang W-L, Li L, Zhao Y, et al. Government regulation to promote coordinated emission reduction among enterprises in the green supply chain based on evolutionary game analysis. Resources, Conservation and Recycling. 2022;182:106290. doi.org/10.1016/ j.resconrec.2022.106290
  25. Mazinani M, Tavakkoli-Moghaddam R, Bozorgi-Amiri A. A Multi-objective Cash-in-transit Pollution-location-routing Problem Based on Urban Traffic Conditions. International Journal of Engineering. 2023;36(2):299-310. 10.1016/j.psep.2023.03.057
International Journal of Engineering
Volume 37, Issue 6
TRANSACTIONS C: Aspects
June 2024
Pages 1175-1182

Files

Share

How to cite

Statistics