Supply Chain Logistics Information Collaboration Strategy Based on Evolutionary Game Theory

Zhang Zhiwen,Wang Long,Li Junxing,Xue Yujun,Gong Limin

doi:10.1109/access.2020.2978943

Abstract

Supply chain logistics information collaboration (SCLIC) is the basis and premise of supply chain logistics collaboration. An effective logistics information collaboration strategy can improve enterprises' chances of success in a new partnership in the supply chain. However, SCLIC is usually difficult to be achieved because of the complexity of the impact factor, strategy evolution process, and stability strategies. We propose an evolutionary game theory-based SCLIC strategy to solve this problem. Firstly, we build an evolutionary game model of SCLIC based on a two-echelon supply chain composed of suppliers and manufacturers. The strategy evolution game of suppliers, manufacturers, and the combination of manufacturers and suppliers are analyzed based on benefit maximization. The evolutionary stability strategy (ESS) is determined. Secondly, we analyze the impact of the relevant parameters on the strategy evolution process. And we use a comprehensive simulation to examine the efficiency of the proposed model. Finally, some managerial insights are presented for the supply chain enterprises to promote the realization of SCLIC.

Highlights

With the rapid changes in global market demand and the uncertainty of economic priorities among trading partners, manufacturing enterprises have encountered major challenges [1]
This paper focuses on the Supply chain logistics information collaboration (SCLIC) strategy based on evolutionary game theory (EGT) to address this gap
Data from 617 Chinese manufacturing firms are used to investigate the relationships among competitive environments, supply chain information sharing (SCIS), and supply chain performance and the results show that internal information sharing and information sharing with customers are positively related to superior supply chain performance [17]

Summary

INTRODUCTION

With the rapid changes in global market demand and the uncertainty of economic priorities among trading partners, manufacturing enterprises have encountered major challenges [1]. Agricultural machinery manufacturing enterprises, according to our investigation, are in urgent need of effective SCLIC in order to improve the ability of logistics coordination and competition level of the supply chain. Information sharing and collaboration between supply chain individuals are effective strategies for improving performance. Reference [65] uses an evolutionary game framework to investigate how to optimize the strategy of low carbon investment for suppliers and manufacturers in supply chains, and discusses the impacts on ESS. PROBLEM DESCRIPTION AND ASSUMPTIONS This paper considers a two-echelon supply chain composed of two groups: manufacturer group M and supplier group S Enterprises in both groups are bounded rational, so they usually choose certain strategies and conduct exploratory behavior according to their own conditions and abilities to predict and analyze.

EVOLUTIONARY GAME MODEL

SIMULATION ANALYSIS

CONCLUSION