Supply Chain Coordination between Autonomous Agents - a game theory approach

A supply chain is a network of suppliers, factories, warehouses, distribution centers and retailers, through which raw materials are acquired, transformed, produced and delivered to the customer. A supply chain management system (SCMS) manages the cooperation of these system components. In the computational world, roles of individual entities in a supply chain can be implemented as distinct agents [1]. In this paper we present supply chain coordination between Autonomous Agents. Moreover, we present a cooperative game theory approach to describe the SCM coordination. Numerical and theoretical game examples are detailed in this paper, which help to understand the usefulness of cooperative game theory in SCM.