An economic approach for supply chain network design based on assignment game

Based on the operation characteristics of supply chain, we establish a ´m to n´ collaboration economic model for multi-stage multi-members supply chain network design, with the objective for the maximization of enterprise´ profits and the constraint of their production capacity. Our study shows that the core enterprises in supply chain alliance can maximize their whole chain network profits by coordinating the cooperation production relationships among their member enterprises properly under their production capacity and willingness-to-pay. Since the cooperation strategies satisfy the definition of the core of assignment game, their practice can also enhance the stability of supply chain alliance.