Simulation of a supply chain game with multiple fuzzy goals

Authors:
Chen Yuh-Wen;Moussa Larbani;Liu Chen-Hao
Affiliations:
Institute of Industrial Engineering and Management of Technology, Da-Yeh University, 168 University Road, Da-Tsuen, Chang-Hwa 51505, Taiwan;Department of Business Administration, Kulliyyah of Economics and Management Sciences, IIUM University, Jalan Gombak, 53100 Kuala Lumpur, Malaysia;Department of Digital Technology, Kai-Nan University, No. 1 Kainan Road, Luchu, Taoyuan County 33857, Taiwan
Venue:
Fuzzy Sets and Systems
Year:
2010

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Abstract

Supply chain management (SCM) issues have been popularly discussed in recent years. However, few papers in past literature have been dedicated to the use of fuzzy multi-objective-game framework for analyzing how the strategic partnership influences individual and global performance in a supply chain. This study formulates a game framework for the investigation of strategic behavior of supply chain partners based on fuzzy multi-objective programming, the alliance matrix and achievement level/aspiration degree. This work assumes the partners as having multiple objectives and the supply chain is multi-product and multi-material. To validate our model we simulate the micro- and macro-performance of a supply chain by the achievement level under various partner alliances. In addition, a sensitivity analysis is conducted. Finally, some useful lessons are summarized.