Title: A Fictitious Play algorithm applied to a retailer's replenishment decision problem in a two-echelon supply chain
Authors: Laila N. Cure-Vellojin, Diana G. Ramirez-Rios, Maria C. Herrera-Hernandez, Carlos D. Paternina-Arboleda, William A. Miller
Addresses: Department of Industrial and Management Systems Engineering, University of South Florida, Tampa, FL, USA. ' Fundacion Centro de Investigacion en Modelacion Empresarial del Caribe (FCIMEC), Cra. 41F, No. 85-75, Barranquilla, Colombia. ' Department of Industrial and Management Systems Engineering, University of South Florida, Tampa, FL, USA. ' Departamento de Ingenieria Industrial, Universidad del Norte, Km 5 Via Puerto Colombia, Barranquilla, Colombia. ' Department of Industrial and Management Systems Engineering, University of South Florida, Tampa, FL, USA
Abstract: Fictitious Play (FP) concept, based on Game Theory, can be used for developing models to characterise conditions in supply chain. The focus of this paper is on using an FP algorithm as a learning methodology to analyse performance of a two-echelon supply chain, highlighting one-echelon retailers| processes for making decisions about replenishments. FP methodology has not been applied well to supply chain conditions. This paper provides an approach using FP to analyse retailers| two-echelon supply chain problems to create equilibrium policies to improve systems| performance.
Keywords: fictitious play; learning methodologies; decision-making; algorithms; retailers; retail trade; replenishment decisions; two-echelon supply chains; SCM; supply chain management; game theory; performance analysis; one-echelon processes; equilibrium policies; system performance; logistics systems; logistics management.
DOI: 10.1504/IJLSM.2011.038986
International Journal of Logistics Systems and Management, 2011 Vol.8 No.3, pp.247 - 266
Published online: 30 Apr 2015 *
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