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Collaboration Planning Among Supply Chain Partners Using an ANP and Game Theory-Based Approach
Abstract
In response to current economic downturn coupled with intense global competition, the concept of supply chain collaboration has emerged as a possible solution for firms aiming to gain competitive advantage through cost reduction, increased asset utilization and improving service levels. In this chapter, the authors address the problem of collaboration planning between multiple retailers and/or suppliers in a supply chain network. Three problems are considered, namely partner selection, collaboration strategy selection, and profit allocation, among the partners entering into a collaboration. Three techniques, namely cluster analysis, analytical network process (ANP), and game theory, are used for this purpose. Partner selection for collaboration is done using cluster analysis and analytical network process (ANP) while collaboration strategy selection is made through the application of game theory. The profit allocation among collaborating partners is performed using Shapley method. A numerical application is provided.
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