Game theory in creating supply chain logistics strategy - the possibility of applying a holistic approach

Andrzej Rzeczycki

doi:10.1051/matecconf/201929602006

Abstract

The game theory, due to its potent ial in creat ing behavioral models, can become a tool used in the area of formulat ing or redesigning logist ic st rategies of supply chains (networks). The exist ing research in this field focuses on the analysis of individual decisions in one specific area. The art icle discusses the holist ic approach to this problem by ident ifying exist ing limitat ions and present ing a framework concept for the applicat ion of game theory in the design of supply chain logist ics st rategies. The conclusions were drawn on the basis o f theoret ical literature studies, supply chain surveys (on different level chain part icipants) and laboratory experiment . In results found that the idea of a common interpretat ion of the st rategy and the holist ic applicat ion of game theory in the search fo r opt imal solut ions to decision-making problems requires changing the approach to designing / redesigning the supply chain logist ics st rategy.

Highlights

Game theory in its assumptions deals with the search for solutions in conflict situations, so the game is a simp lified model of the conflict situation, and possible cooperation
Evidence of how many approaches and methods was developed by developing the theory of games is the analysis carried out at the beginning of the 21st century as part of the GAMUT project, during wh ich 122 d ifferent sets of games were identified for which 71 generative procedures were found, and 35 basic classes of games were identified in order to creating an IT tool that allows testing any algorith m that requires a game in its normal form as an entry [16]
Key questions arise: how strongly are the behavioral factors influencing strategic decisions in the supply chains, whether they depend on other modeled variab les, or the probability of deviation is large enough to be considered and whether the assumptions regarding the rationality of hu man behavior are they bigger than it is possible to obtain? the utilitarianis m of game theory raises many doubts, it must be admitted that it introduces taxono my in this field, and despite the difficulties in achieving a clear solution, it allo ws build ing general behavior patterns supporting strategic logistics decisions

Summary

Introduction

Game theory in its assumptions deals with the search for solutions in conflict situations, so the game is a simp lified model of the conflict situation, and possible cooperation. Game theory in the analysis of supply chain logistics decisions

Results

Conclusion