The Optimal Strategy in Collaborative Games in Decentralized Networks (A Case Study in Small and Medium Industries)

Document Type : Research Article (Original Article)

Authors

1 PhD candidate of Industrial Management, Faculty of Industrial Management, Islamic Azad University South Tehran Branch, Tehran, Iran.

2 Assistant Professor, Faculty of Industrial Engineering, Islamic Azad University South Tehran Branch, Tehran, Iran.

3 Associate Professor, Faculty of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran.

4 Associate Professor, Faculty of Industrial Engineering, Islamic Azad University South Tehran Branch, Tehran, Iran.

5 Assistant Professor, Payame Noor University, Tehran, Iran.

Abstract

Due to the rapid development of technology and emerging of severe competitive environments, the main objective of decentralized distribution networks operated by different providers is to maximize their profits in the network. One of the key tools to improve network performance in distribution networks is game theory and cooperative games. The main objective of this study is to investigate the role of small and medium industries in the development of the country's economic activity and to achieve a collaborative model to organize decentralized networks effectively. This makes these industries consider their main variables such as capacity, time and cost as important elements in today's competitive environments and try to increase their service levels to customers and promote the products according to customers' demand .On the other hand, in the real world due to various reasons such as sanctions, politics issues, earthquake, and war, time, the amount of flow, and cost are changed. Thus, to overcome unforeseen issues, it is important for suppliers to know how to cooperate to gain more payoffs in the network in order. In this study a mathematical problem for these industries is provided that considers various scenarios in uncertain situations. Then, to explain and demonstrate the applicability of the model, three numerical examples in these industries are discussed and the performances of cooperative and non-cooperative approaches are compared. The results show that cooperative games lead to an increase in players' payoffs and the utility function has boosted the effectiveness of cooperative.

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