Applying Game Theory Models for Risk Management in Supply Chain Networks

Khyati Chaudhary¹, Gopal Chaudhary², Manju Khari³

¹ Faculty of Engineering and Technology agra College Agra, India

²VIPS-TC, School of engineering and technology, Delhi, India

³School of Computer and Systems Sciences, Jawaharlal Nehru University, New Delhi, India

Emails:  khyati7903@gmail.com; gopal.chaudhary88@gmail.com;  manjukhari@yahoo.co.in

Abstract

 Supply chain networks are complex systems that involve multiple entities and activities, making them vulnerable to various risks that can negatively impact their performance. Game theory models have been used in various fields to analyze strategic interactions among agents and to make decisions in uncertain environments. This study investigates the application of game theory models for risk management in supply chain networks. Then, we present a framework for applying game theory models for risk management in supply chain networks. Our framework consists of three stages: risk identification, risk analysis, and risk mitigation. We validate the application of the proposed framework using a case study of a supply chain network for a fictional company. The results of the case study demonstrate that game theory models can provide valuable insights into the behavior of supply chain entities in different risk scenarios. The models can also help in identifying optimal strategies for mitigating risks and improving the performance of the supply chain network. The finding  imply that the proposed framework can be used as a guide for practitioners to apply game theory models in their supply chain risk management practices.

Keywords: Game Theory Models; Risk Management; Supply Chain Management.