Analysis of a Stackelberg game between a customer and several cooperating suppliers: stability and efficiency

ABSTRACT

We analyse the performances of a supply chain where multiple capacitated suppliers are solicited by a customer who offers a new product procurement suggestion. The customer allocates demand volume to suppliers in a way to maximise his own profit. On the other hand, suppliers can cooperate by forming coalitions. We study coalition structures’ stability and show that such cooperation improves the total supply chain performances. We show however that decentralisation of decisions may lead to the loss of the offer even when suppliers cooperate. We show also that total performances can be more improved if suppliers and the customer cooperate together.

KEYWORDS:

• Supply chain management
• Stackelberg game
• coalition formation
• stochastic modelling

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Ibtissem Ernez Gahbiche

Ibtissem Ernez-Gahbiche is a PhD student at the National Engineering School of Monastir (Tunisia). She holds a Master’s Degree in Industrial systems’ engineering from the National Engineering School of Tunis (Tunisia).

Khaled Hadjyoussef

Khaled Hadjyoussef is an associate professor at the same school. He holds a PhD degree in industrial engineering from Ecole Centrale Paris (France).

Zied Jemai

Zied Jemai is an associate professor at the Chaire Supply Chain Management of Ecole Centrale Paris. He holds a PhD degree in industrial engineering from this school.

Their research interests are in the fields of supply chain management, inventory control and stochastic models, with a special emphasis on modelling and optimisation.

Abdelwaheb Dogui

Abdelwaheb Dogui is a professor at National Engineering School of Monastir (Tunisia). He was the founder of the Mechanical Engineering Laboratory. He was president of the University of Monastir. He has more than 160 publications in several fields which are related to mechanical engineering.