Determining Retailer Marginal Profit in Two Echelon Supply Chain Using Game Theory<br/>

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Determining Retailer Marginal Profit in Two Echelon Supply Chain Using Game Theory

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Type of Document: M.Sc. Thesis
Language: Farsi
Document No: 47369 (01)
University: Sharif University of Technology
Department: Industrial Engineering
Advisor(s): Kianfar, Farhad
Abstract:
In this thesis we investigated a two level seller-buyer supply chain by game theoretical approach. We formulated interaction between seller and buyer as stackelberg game. In seller-stackelberg game , seller role as leader and buyer as follower. likewise in buyer-stackelberg buyer is leader and seller is follower. In our model the demand is an equation in which the dependent variable is a linear function of three independent variables and a disturbance term. The three independent value in demand function are marketing cost , wholesale price , retailing price. The disturbance term in demand function has normal distribution by constant variance and zero expected value. Sale amount considered as expected value of minimum of demand and quantity order. According to the numerical solution of model that presented in this thesis we found that when seller and buyer are leader they gain less profit while they role as follower. To solve our stackelberg model we used two algorithm. First is Enumeration method and second is genetic algorithm that introduced by boading liu. Enumeration method is suitable for small size problem while genetic algorithm suitable for large scale algorithm
Keywords:
Game Theory ; Stackelberg Game ; Genetic Algorithm ; Two-Stage Supply Chain

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