Supply chain collaborationA Game-theoretic approach to profit allocation
ISSN: 2013-0953
Argitalpen urtea: 2016
Alea: 9
Zenbakia: 5
Orrialdeak: 1020-1034
Mota: Artikulua
Beste argitalpen batzuk: Journal of Industrial Engineering and Management
Laburpena
Purpose: This paper aims to develop a theoretical framework for profit allocation, as a mechanism for aligning incentives, in collaborative supply chains.Design/methodology/approach: The issue of profit distribution is approached from a game-theoretic perspective. We use the nucleolus concept. The framework is illustrated through a numerical example based on the Beer Game scenario.Findings: The nucleolus offers a powerful perspective to tackle this problem, as it takes into consideration the bargaining power of the different echelons. We show that this framework outperforms classical alternatives.Research limitations/implications: The allocation of the overall supply chain profit is analyzed from a static perspective. Considering the dynamic nature of the problem would be an interesting next step. Practical implications: We provide evidence of drawbacks derived from classical solutions to the profit allocation problem. Real-world collaborative supply chains need of robust mechanisms like the one tackled in this work to align incentives from the various actors.Originality/value: Adopting an efficient collaborative solution is a major challenge for supply chains, since it is a wide and complex process that requires an appropriate scheme. Within this framework, profit allocation is essential.