A strategic scheme for partnership supply networks focusing on green multi-agent transportations: a game theory approach.

Abstract

Competition to gain more market share leads to the development of a dynamic environment and the fulfillment of an improvement cycle in supply networks. In this paper, as the first attempt, two strategic periods based on the introduction and growth phases of supply networks are considered. Each of these periods has its own characteristics and develops different competitive structures. The allocation of market share between competing supply networks is carried out on the extent of their relationships with green orientations in the network. The ownership of supply sources in these networks is replaced by that of relationships (partnership supply) developed by some parent brands. The efforts of each parent brand towards establishing green supply relationships lead to a greater market share for it. Further to competition between the supply networks, co-petition within each network also results in the emergence of different virtual alliance structures. The performance history of each brand and its subsidiary partners in the first period is included in the second period's assessments and leads to the development or decline of the network. Another dimension of the paper lies in the development of multi-agent transportation arising from the green requirements. Two gaming-based heuristic algorithms are proposed for handling the decentralized decision-making structures in the multi-period multi-stage platform under discussion. To evaluate the taken approach, a real-world inspired case is taken into account. The numerical results prove the better performance of the proposed scheme towards green coverage of the network and, thereupon, increased market share.