Analysis of leadership structures for two-echelon supply chains involving multiple risky suppliers

We address a game theoretical analysis of the leadership structure of two-echelon supply chains with a single supplier and a single retailer involving a risky supplier under demand uncertainty. The risky supplier has a risk of unavailability of delivering the product to the retailer. The equilibrium...

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Main Authors: Takuya TSUBOI, Tatsushi NISHI, Guoqing ZHANG
Format: Article
Language:English
Published: The Japan Society of Mechanical Engineers 2018-07-01
Series:Journal of Advanced Mechanical Design, Systems, and Manufacturing
Subjects:
Online Access:https://www.jstage.jst.go.jp/article/jamdsm/12/3/12_2018jamdsm0070/_pdf/-char/en
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author Takuya TSUBOI
Tatsushi NISHI
Guoqing ZHANG
author_facet Takuya TSUBOI
Tatsushi NISHI
Guoqing ZHANG
author_sort Takuya TSUBOI
collection DOAJ
description We address a game theoretical analysis of the leadership structure of two-echelon supply chains with a single supplier and a single retailer involving a risky supplier under demand uncertainty. The risky supplier has a risk of unavailability of delivering the product to the retailer. The equilibrium solutions for different leadership structures are analytically derived. The influence of the probability of risky supplier availability on the optimal leadership structure is investigated. The model is extended to consider a two-echelon supply chain with two risky suppliers. The total profits for each leadership structure are evaluated from the perspective of the entire supply chain. The analytical results show that the leadership structure with the risky supplier as a leader can maximize the total profit. Numerical examples are provided to show the validity of the proposed analysis.
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spelling doaj.art-f62718d2c7ea4faa843171944a26597a2022-12-22T02:59:39ZengThe Japan Society of Mechanical EngineersJournal of Advanced Mechanical Design, Systems, and Manufacturing1881-30542018-07-01123JAMDSM0070JAMDSM007010.1299/jamdsm.2018jamdsm0070jamdsmAnalysis of leadership structures for two-echelon supply chains involving multiple risky suppliersTakuya TSUBOI0Tatsushi NISHI1Guoqing ZHANG2Graduate School of Engineering Science Osaka UniversityGraduate School of Engineering Science Osaka UniversityDepartment of Industrial and Manufacturing Systems, University of WindsorWe address a game theoretical analysis of the leadership structure of two-echelon supply chains with a single supplier and a single retailer involving a risky supplier under demand uncertainty. The risky supplier has a risk of unavailability of delivering the product to the retailer. The equilibrium solutions for different leadership structures are analytically derived. The influence of the probability of risky supplier availability on the optimal leadership structure is investigated. The model is extended to consider a two-echelon supply chain with two risky suppliers. The total profits for each leadership structure are evaluated from the perspective of the entire supply chain. The analytical results show that the leadership structure with the risky supplier as a leader can maximize the total profit. Numerical examples are provided to show the validity of the proposed analysis.https://www.jstage.jst.go.jp/article/jamdsm/12/3/12_2018jamdsm0070/_pdf/-char/ensupply chain managementgame theorynash equilibriumstackelberg equilibriumuncertain delivery
spellingShingle Takuya TSUBOI
Tatsushi NISHI
Guoqing ZHANG
Analysis of leadership structures for two-echelon supply chains involving multiple risky suppliers
Journal of Advanced Mechanical Design, Systems, and Manufacturing
supply chain management
game theory
nash equilibrium
stackelberg equilibrium
uncertain delivery
title Analysis of leadership structures for two-echelon supply chains involving multiple risky suppliers
title_full Analysis of leadership structures for two-echelon supply chains involving multiple risky suppliers
title_fullStr Analysis of leadership structures for two-echelon supply chains involving multiple risky suppliers
title_full_unstemmed Analysis of leadership structures for two-echelon supply chains involving multiple risky suppliers
title_short Analysis of leadership structures for two-echelon supply chains involving multiple risky suppliers
title_sort analysis of leadership structures for two echelon supply chains involving multiple risky suppliers
topic supply chain management
game theory
nash equilibrium
stackelberg equilibrium
uncertain delivery
url https://www.jstage.jst.go.jp/article/jamdsm/12/3/12_2018jamdsm0070/_pdf/-char/en
work_keys_str_mv AT takuyatsuboi analysisofleadershipstructuresfortwoechelonsupplychainsinvolvingmultipleriskysuppliers
AT tatsushinishi analysisofleadershipstructuresfortwoechelonsupplychainsinvolvingmultipleriskysuppliers
AT guoqingzhang analysisofleadershipstructuresfortwoechelonsupplychainsinvolvingmultipleriskysuppliers