Formulating the supply chain strategy of automotive industry in Iran using balanced Scorecard, System Dynamics, and Game Theory

Abstract

The current study focuses on the necessity of using strategic planning in supply chain management of an organization in order to apply the opportunities and face the threats through formulating the appropriate strategy by means of game theory and system dynamics. It also studies the Automotive Industry in Iran from four main aspects to implement different strategies. At first, the main variables of supply chain are identified, then causal diagrams are created in the form of feedback relationships. In the next stage, the variables of surface and rate are identified to draw the model of surface and flow; finally, simulation equations for 10 years are presented. Selecting the best mixed strategy as a game with four players has been considered and each player (aspect) can select three strategies. At the end, through the concept of Shapley, the effectiveness of each player in providing utility is measured and by means of decision tree, the best mixed strategy is selected. The results indicated that manufacturers will play the greatest role in the future of Automotive Industry in Iran.