Logistics networks: a game theory application for solving the transshipment problem. (English) Zbl 1090.91010

Summary: As competition from emerging economies such as China and India puts pressure on global supply chains and as new constraints emerge, it presents opportunities for approaches such as game theory for solving the transshipment problem. In this paper we use the well-known Shapley value concept from cooperative game theory as an approach to solve the transshipment problem for maintaining stable conditions in the logistics network. A numerical example is presented to show the usefulness of this approach.


91A12 Cooperative games
90B06 Transportation, logistics and supply chain management
Full Text: DOI


[1] M.J. Bauer, C.C. Poirier, Computer Sciences Corp., L. Lapide, J. Bermudez, AMR Research, e-Business: The Strategic Impact on Supply Chain and Logistics, Council of Logistics Management, Illinois, 2001.
[2] Beamon, B., Measuring supply chain performance, International journal of operations and production management, 19, 275-292, (1999)
[3] Elmuti, D., The perceived impact of supply chain management on organizational effectiveness, Journal of supply chain management, 38, 3, 49-58, (2002)
[4] Dornier, P.-P.; Earnt, R.; Fender, M.; Kouvelis, P., Global operations and logistics: text and cases, (1998), John Wiley and Sons, Inc. New York, NY
[5] Fleisher, L.; Tardos, E., Efficient continuous-time dynamic network flow algorithms, Operations research letters, 23, 71-80, (1998) · Zbl 0947.90016
[6] Ford, L.R.; Fulkerson, D.R., Flows in networks, (1962), Princeton University Press Princeton, NJ · Zbl 0139.13701
[7] Hong-Minh, S.; Disney, S.; Naim, M., The dynamics of emergency transhipment supply chains, International journal of physical distribution and logistics, 30, 788-815, (2000)
[8] Kalai, E.; Zemel, E., Generalized network problem yielding totally balanced games, Operations research, 30, 998-1008, (1982) · Zbl 0493.90032
[9] Kalai, E.; Zemel, E., Totally balanced games and games of flow, Mathematics of operations research, 7, 476-478, (1982) · Zbl 0498.90030
[10] Kurt Salmon Associates, Efficient Consumer Response: Enhancing Consumer Value in the Grocery Industry, 1993.
[11] Kopczak, L.R.; Johnson, M.E., The supply chain management effect, MIT sloan management review, 44, 3, 27-34, (2003)
[12] T. Laseter, K. Oliver, When Will Supply Chain Management Grow Up? Strategy + Business, Issue 32, Fall, Booz Allen Hamilton Inc., 2003, pp. 32-36.
[13] Lee, H.L.; Whang, S., Demand chain excellence: a tale of two retailers, Supply chain management review, 5, March-April, 40-47, (2001)
[14] Reddy, R., Supply chain intelligence, Intelligent enterprise, 6, 8, 44-45, (2003)
[15] Spekman, R.; Kamauff, J.; Myhr, N., An empirical investigation into supply chain management: a perspective on partnerships, Chain management: an international journal, 3, 53-67, (1998)
[16] Stank, T.; Goldsby, T., A framework for transportation decision making in an integrated supply chain, Supply chain management: an international journal, 5, 71-77, (2000)
[17] Tagaras, G., Pooling in multi-location periodic inventory distribution systems, Omega: the international journal of management science, 27, 39-59, (1999)
[18] Urban, T.L., Supply contracts with periodic stationary commitment, Production and operations management, 9, 4, 400-413, (2000)
[19] Simchi-Levi, D.; Kaminsky, P.; Simchi-Levi, E., Designing and managing the supply chain: concepts, strategies, and cases, (2003), McGraw-Hill New York, NY
[20] Alfredsson, P.; Verrijdt, J., Modeling emergency supply chain flexibility in a two-echelon inventory system, Management science, 45, 10, 1416-1431, (1999) · Zbl 1231.90006
[21] Cachon, G.; Lariviere, M., Capacity choice and allocation: strategic behavior and supply chain performance, Management science, 45, 8, 1091-1108, (1999) · Zbl 1231.90012
[22] Weber, M.; Prasad, K., Factors underlying use of point-of-Sale and electronic data interchange in retailing logistics, Supply chain management: an international journal, 7, 5, 311-317, (2002)
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.