Subscribe to the gold package and get unlimited access to Shamra Academy
Register a new userStrategic Formation and Reliability of Supply Chain Networks
92
0
0.0
(
0
)
Added by
Victor Amelkin
Publication date
2019
fields
Informatics Engineering
and research's language is
English
Ask ChatGPT about the research
No Arabic abstract
Supply chains are the backbone of the global economy. Disruptions to them can be costly. Centrally managed supply chains invest in ensuring their resilience. Decentralized supply chains, however, must rely upon the self-interest of their individual components to maintain the resilience of the entire chain. We examine the incentives that independent self-interested agents have in forming a resilient supply chain network in the face of production disruptions and competition. In our model, competing suppliers are subject to yield uncertainty (they deliver less than ordered) and congestion (lead time uncertainty or, soft supply caps). Competing retailers must decide which suppliers to link to based on both price and reliability. In the presence of yield uncertainty only, the resulting supply chain networks are sparse. Retailers concentrate their links on a single supplier, counter to the idea that they should mitigate yield uncertainty by diversifying their supply base. This happens because retailers benefit from supply variance. It suggests that competition will amplify output uncertainty. When congestion is included as well, the resulting networks are denser and resemble the bipartite expander graphs that have been proposed in the supply chain literature, thereby, providing the first example of endogenous formation of resilient supply chain networks, without resilience being explicitly encoded in payoffs. Finally, we show that a suppliers investments in improved yield can make it worse off. This happens because high production output saturates the market, which, in turn lowers prices and profits for participants.
rate research
Read More
How does supply uncertainty affect the structure of supply chain networks? To answer this question we consider a setting where retailers and suppliers must establish a costly relationship with each other prior to engaging in trade. Suppliers, with uncertain yield, announce wholesale prices, while retailers must decide which suppliers to link to based on their wholesale prices. Subsequently, retailers compete with each other in Cournot fashion to sell the acquired supply to consumers. We find that in equilibrium retailers concentrate their links among too few suppliers, i.e., there is insufficient diversification of the supply base. We find that either reduction of supply variance or increase of mean supply, increases a suppliers profit. However, these two ways of improving service have qualitatively different effects on welfare: improvement of the expected supply by a supplier makes everyone better off, whereas improvement of supply variance lowers consumer surplus.
A hybrid simulation-based framework involving system dynamics and agent-based simulation is proposed to address duopoly game considering multiple strategic decision variables and rich payoff, which cannot be addressed by traditional approaches involving closed-form equations. While system dynamics models are used to represent integrated production, logistics, and pricing determination activities of duopoly companies, agent-based simulation is used to mimic enhanced consumer purchasing behavior considering advertisement, promotion effect, and acquaintance recommendation in the consumer social network. The payoff function of the duopoly companies is assumed to be the net profit based on the total revenue and various cost items such as raw material, production, transportation, inventory and backorder. A unique procedure is proposed to solve and analyze the proposed simulation-based game, where the procedural components include strategy refinement, data sampling, gaming solving, and performance evaluation. First, design of experiment and estimated conformational value of information techniques are employed for strategy refinement and data sampling, respectively. Game solving then focuses on pure strategy equilibriums, and performance evaluation addresses game stability, equilibrium strictness, and robustness. A hypothetical case scenario involving soft-drink duopoly on Coke and Pepsi is considered to illustrate and demonstrate the proposed approach. Final results include P-values of statistical tests, confidence intervals, and simulation steady state analysis for different pure equilibriums.
Strategic network formation arises where agents receive benefit from connections to other agents, but also incur costs for forming links. We consider a new network formation game that incorporates an adversarial attack, as well as immunization against attack. An agents benefit is the expected size of her connected component post-attack, and agents may also choose to immunize themselves from attack at some additional cost. Our framework is a stylized model of settings where reachability rather than centrality is the primary concern and vertices vulnerable to attacks may reduce risk via costly measures. In the reachability benefit model without attack or immunization, the set of equilibria is the empty graph and any tree. The introduction of attack and immunization changes the game dramatically; new equilibrium topologies emerge, some more sparse and some more dense than trees. We show that, under a mild assumption on the adversary, every equilibrium network with $n$ agents contains at most $2n-4$ edges for $ngeq 4$. So despite permitting topologies denser than trees, the amount of overbuilding is limited. We also show that attack and immunization dont significantly erode social welfare: every non-trivial equilibrium with respect to several adversaries has welfare at least as that of any equilibrium in the attack-free model. We complement our theory with simulations demonstrating fast convergence of a new bounded rationality dynamic which generalizes linkstable best response but is considerably more powerful in our game. The simulations further elucidate the wide variety of asymmetric equilibria and demonstrate topological consequences of the dynamics e.g. heavy-tailed degree distributions. Finally, we report on a behavioral experiment on our game with over 100 participants, where despite the complexity of the game, the resulting network was surprisingly close to equilibrium.
The inventories carried in a supply chain as a strategic tool to influence the competing firms are considered to be strategic inventories (SI). We present a two-period game-theoretic supply chain model, in which a singular manufacturer supplies products to a pair of identical Cournot duopolistic retailers. We show that the SI carried by the retailers under dynamic contract is Pareto-dominating for the manufacturer, retailers, consumers, the channel, and the society as well. We also find that retailers SI, however, can be eliminated when the manufacturer commits wholesale contract or inventory holding cost is too high. In comparing the cases with and without downstream competition, we also show that the downstream Cournot duopoly undermines the profits for the retailers, but benefits all others.
Motivated by applications in cyber security, we develop a simple game model for describing how a learning agents private information influences an observing agents inference process. The model describes a situation in which one of the agents (attacker) is deciding which of two targets to attack, one with a known reward and another with uncertain reward. The attacker receives a single private sample from the uncertain targets distribution and updates its belief of the target quality. The other agent (defender) knows the true rewards, but does not see the sample that the attacker has received. This leads to agents possessing asymmetric information: the attacker is uncertain over the parameter of the distribution, whereas the defender is uncertain about the observed sample. After the attacker updates its belief, both the attacker and the defender play a simultaneous move game based on their respective beliefs. We offer a characterization of the pure strategy equilibria of the game and explain how the players decisions are influenced by their prior knowledge and the payoffs/costs.
Log in to be able to interact and post comments
comments
Fetching comments
Sign in to be able to follow your search criteria
