Title: A collaborative supply chain model for non-for-profit networks based on cooperative game theory

Authors: Vladimir Balza-Franco; Carlos D. Paternina-Arboleda; Víctor Cantillo; Luis Fernando Macea; Diana G. Ramírez-Ríos

Addresses: Department of Industrial Engineering, Universidad del Magdalena, Colombia ' Department of Industrial Engineering, Universidad del Norte, Colombia ' Department of Civil and Environmental Engineering, Universidad del Norte, Colombia ' Department of Civil and Environmental Engineering, Universidad del Norte, Colombia ' Department of Civil and Environmental Engineering, Rensselaer Polytechnic Institute, Troy, New York, USA

Abstract: For both the commercial logistics networks as the non-for-profit ones, collaboration among suppliers is an important strategic resource. This paper considers a tactical model for the optimisation of a commercial supply chain for a non-for-profit relief network, inspired on a previously developed post-disaster logistics model. In order to evaluate the effect of cooperation among the different competitors, a logistic network was simulated and several cooperation scenarios were considered, based on the strengths of each one of the actors involved. The model aims the minimum cost of supplying a specific item for the network and, at the same time, it allows for the different suppliers assess the benefits derived from cooperation. Following a cooperative game theory approach, the Shapley value was calculated in order to determine the distribution of costs as well as the utilities of the players involved and to determine the feasibility of the cooperation scheme designed.

Keywords: collaborative supply chains; horizontal collaboration; not for profit supply networks; cooperative games; game theory; simulation; Shapley value; supply chain collaboration; supply chain management; SCM; relief networks; post-disaster logistics; emergency relief; emergency management; disaster relief.

DOI: 10.1504/IJLSM.2017.082614

International Journal of Logistics Systems and Management, 2017 Vol.26 No.4, pp.475 - 496

Received: 10 Sep 2015
Accepted: 12 Jan 2016
Published online: 03 Mar 2017 *

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