Integration of Mathematical Programming and Game Theory for Supply Chain Planning Optimization in Multi-objective competitive scenarios

ZAMARRIPA, MIGUEL; AGUIRRE, ADRIÁN MARCELO; MÉNDEZ, CARLOS ALBERTO; ESPUÑA, ANTONIO

Londres

Simposio; 22nd European Symposium on Computer Aided Process Engineering; 2012

Ina Daved Lockhart Bogle and Michael Fairweather (Editors)

This work develops a multi-objective MILP (Mixed Integer Linear Programming) model, devised to optimize the planning of supply chains using Game Theory optimization for decision making in cooperative and/or competitive scenarios. Three different optimization criteria are considered (total cost, tardiness and expenses of the buyers for the competitive problem). The multi objective problem has been solved using the Pareto frontier solutions, and both cooperative and non cooperative scenarios between supply chains are considered, so multiple optimization tools/techniques have been combined to analyze the different trade-offs associated to the resulting decision making: Game Theory, MILP based approach and Pareto frontiers. The resulting model is tested in a case study, based on the operation of two different supply chains in both competitive and cooperative situations. © 2012 Elsevier B.V.