Title: Managing supply chain disruption risks: a game-theoretical approach

Authors: Konstantinos Papapanagiotou; Dimitrios Vlachos

Addresses: Department of Mechanical Engineering, Laboratory of Quantitative Analysis, Logistics and Supply Chain Management, Aristotle University of Thessaloniki, 54124, Thessaloniki, Greece. ' Department of Mechanical Engineering, Laboratory of Quantitative Analysis, Logistics and Supply Chain Management, Aristotle University of Thessaloniki, 54124, Thessaloniki, Greece

Abstract: The evolution of Supply Chain Networks (SCN) increases risk exposure and vulnerability, making resilience against disruptions a necessity. Several efforts have been made to improve our understanding of Supply Chain Risk Management (SCRM). However, only a few study the supply chain decisions' interdependencies. Supply chain partners could be seen as players in a game defined by various objectives, resources, demands and risks. Game theory provides solid background for system modelling, suitable to analyse these interactions. This paper reviews game theoretical approaches to SCRM and studies the disruption effect on a supply chain consisting of a supplier and a retailer.

Keywords: SCRM; supply chain risks; risk management; risk sharing; game theory; supply chain disruption; supply chain management; SCM; supply chain networks; supply chain resilience; modelling.

DOI: 10.1504/IJMOR.2012.048929

International Journal of Mathematics in Operational Research, 2012 Vol.4 No.5, pp.515 - 530

Published online: 23 Dec 2014 *

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