Cooperative aggregate production planning: a game theory approach

Authors

  • Ashkan Hafezalkotob Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Entezari Aly, Oskoui St, Choobi Brg, Tehran, 1151863411, Iran
  • Samaneh Chaharbaghi Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Entezari Aly, Oskoui St, Choobi Brg, Tehran, 1151863411, Iran
  • Tahmineh Moradi Lakeh Department of Industrial Engineering, South Tehran Branch, Islamic Azad University, Entezari Aly, Oskoui St, Choobi Brg, Tehran, 1151863411, Iran
Abstract:

Production costs in general, and workforce and inventory costs in particular, constitute a large fraction of the operating costs of many manufacturing plants. We introduce cooperative aggregate production planning as a way to decrease these costs. That is, when production planning of two or more facilities (plants) is integrated, they can interchange workforce and products inventory; thus, their product demands can be satisfied at lower cost. This paper quantifies the cost saving and synergy of different coalitions of production plants by a new linear model for cooperative aggregate planning problem. The developed approach is explicated with a numerical example in which inventory and workforce levels of different coalitions of facilities are evaluated. Afterward, a key question would be how the cost saving of a coalition should be divided among members. We tackle the problem using different methods of cooperative game theory. These methods are implemented in the numerical example to gain an insight into properties of the corresponding game results.

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

A new Approach Versus Benders Decomposition in Aggregate Production Planning

This paper proposes a simplified solution procedure to the model presented by Akinc and Roodman. The Benders’ decomposition procedure for analyzing this model has been developed, and its shortcomings have been highlighted. Here, the special nature of the problem is exploited which allowed us to develop a new algorithm through surrogating method. The two methods are compared by several numerical...

full text

Adaptive aggregate production planning with fuzzy goal programming approach

Aggregate production planning (APP) determines the optimal production plan for the medium term planning horizon. The purpose of the APP is effective utilization of existing capacities through facing the fluctuations in demand. Recently, fuzzy approaches have been applied for APP focusing on vague nature of cost parameters. Considering the importance of coping with customer demand in different p...

full text

Cooperative network flow problem with pricing decisions and allocation of benefits: A game theory approach

Several real problems in telecommunication, transportation, and distribution industries can be well analyzed by network flow models. In revenue management, pricing plays a primary role which increases the profit generated from a limited supply of assets. Pricing decision directly affects the amount of service or product demand. Hence, in traditional maximum flow problem, we assume that the dema...

full text

Game-Theoretic Approach for Non-Cooperative Planning

When two or more self-interested agents put their plans to execution in the same environment, conflicts may arise as a consequence, for instance, of a common utilization of resources. In this case, an agent can postpone the execution of a particular action, if this punctually solves the conflict, or it can resort to execute a different plan if the agent’s payoff significantly diminishes due to ...

full text

Solving a generalized aggregate production planning problem by genetic algorithms

This paper presents a genetic algorithm (GA) for solving a generalized model of single-item resource-constrained aggregate production planning (APP) with linear cost functions. APP belongs to a class of pro-duction planning problems in which there is a single production variable representing the total production of all products. We linearize a linear mixed-integer model of APP subject to hiring...

full text

A Model for Cooperative Advertising and Pricing Decisions in Manufacturer-Retailer Supply Chain with Discount: A Game Theory Approach

Coordinating the supply chain is among the most important subjects that is extensively addressed in the related literature. If a supply chain is to be coordinated, it is equivalent to say that we must solve a problem related to competition and cooperation. The game theory is obviously one of the most effective methods to solve such problems, in which the players of the supply chain are assumed ...

full text

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 15  issue 1

pages  -

publication date 2019-12-01

By following a journal you will be notified via email when a new issue of this journal is published.

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023