Managing decentralized supply chain using bilevel with Nash game approach

Haque, M; Paul, SK; Sarker, R; Essam, D

Managing decentralized supply chain using bilevel with Nash game approach

Haque, M Paul, SK Sarker, R Essam, D

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Journal of Cleaner Production, 2020, 266, pp. 1-20
Issue Date:: 2020-09

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Field	Value	Language
dc.contributor.author	Haque, M
dc.contributor.author	Paul, SK
dc.contributor.author	Sarker, R
dc.contributor.author	Essam, D
dc.date.accessioned	2020-10-03T23:46:57Z
dc.date.available	2020-10-03T23:46:57Z
dc.date.issued	2020-09
dc.identifier.citation	Journal of Cleaner Production, 2020, 266, pp. 1-20
dc.identifier.issn	0959-6526
dc.identifier.issn	1879-1786
dc.identifier.uri	http://hdl.handle.net/10453/143060
dc.description.abstract	© 2020 Elsevier Ltd This paper considers a multi-echelon, non-cooperative and competitive decentralized supply chain (SC) network consisting of multiple entities. The independent and disjointed entities of a decentralized SC face a major challenge in coordination and maintaining sustainability across its chain. This problem environment is not suitable with traditional monolithic modeling approaches. In this paper, a new bilevel approach is proposed, where each entity prepares a plan for multiple periods, on a rolling horizon basis, by optimizing its own objectives at the lower-level. However, due to limited information sharing between the entities from the lower-level, the dominance and Nash game strategies are applied at the upper-level, for coordinating the supply and demand in a single period. It is expected that the upper-level coordination and planning will be conducted by an independent body. The approach applies a strategy to ensure carbon reduction in transportation, by reducing the required number of vehicles to distribute the products throughout the SC. To demonstrate the usefulness of the approach, numerical analysis is provided with examples. The results of the proposed model are compared with two different approaches. A sensitivity analysis is also conducted with some of the major parameters of the model. The main contribution of this study is to ensure coordination in product distribution quantities throughout a decentralized SC network, to minimize carbon emissions through transportation, and to improve SC sustainability.
dc.language	en
dc.publisher	Elsevier BV
dc.relation.ispartof	Journal of Cleaner Production
dc.relation.isbasedon	10.1016/j.jclepro.2020.121865
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	0907 Environmental Engineering, 0910 Manufacturing Engineering, 0915 Interdisciplinary Engineering
dc.subject.classification	Environmental Sciences
dc.title	Managing decentralized supply chain using bilevel with Nash game approach
dc.type	Journal Article
utslib.citation.volume	266
utslib.for	0907 Environmental Engineering
utslib.for	0910 Manufacturing Engineering
utslib.for	0915 Interdisciplinary Engineering
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Management Discipline
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
pubs.consider-herdc	true
dc.date.updated	2020-10-03T23:46:53Z
pubs.publication-status	Published
pubs.volume	266

Abstract:

© 2020 Elsevier Ltd This paper considers a multi-echelon, non-cooperative and competitive decentralized supply chain (SC) network consisting of multiple entities. The independent and disjointed entities of a decentralized SC face a major challenge in coordination and maintaining sustainability across its chain. This problem environment is not suitable with traditional monolithic modeling approaches. In this paper, a new bilevel approach is proposed, where each entity prepares a plan for multiple periods, on a rolling horizon basis, by optimizing its own objectives at the lower-level. However, due to limited information sharing between the entities from the lower-level, the dominance and Nash game strategies are applied at the upper-level, for coordinating the supply and demand in a single period. It is expected that the upper-level coordination and planning will be conducted by an independent body. The approach applies a strategy to ensure carbon reduction in transportation, by reducing the required number of vehicles to distribute the products throughout the SC. To demonstrate the usefulness of the approach, numerical analysis is provided with examples. The results of the proposed model are compared with two different approaches. A sensitivity analysis is also conducted with some of the major parameters of the model. The main contribution of this study is to ensure coordination in product distribution quantities throughout a decentralized SC network, to minimize carbon emissions through transportation, and to improve SC sustainability.

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http://hdl.handle.net/10453/143060