Abstract
Information asymmetry leads to short-term competitive antagonism between downstream manufacturers and upstream suppliers. This paper applies a master-slave game to reproduce the interest conflict between a manufacturer and a supplier, and proposes a cooperative decision-making model based on information sharing, considering the interest consistency of upstream supply chain members. Additionally, the overall profit coordination mechanism is constructed to ensure the continuation of the cooperative decision-making relationship. In addition, to ensure that the supplier participating in cooperative decision-making has the supply capacity desired by the manufacturer, a rational evaluation system combined with game theory is employed to determine the most suitable participating supplier. A numerical example is given to demonstrate the systematization and effectiveness of the proposed method. Finally, through sensitivity analysis and comparative analysis, managerial insights and recommendations are obtained.
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Acknowledgements
The study was supported by “Fundamental Research Funds for the Central Universities” (JB190606), “Major Theoretical and Practical Research Projects of Social Science in Shaanxi province” (2019C068).
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Appendices
Appendix A: Linguistic scale and entropy weight
Assuming that a group of linguistic variables of TFNs are represented by TFNs = {L, ML, M, MH, H}, the meaning is shown in Fig. 8.
With m evaluation criteria and n evaluation objects, the original data matrix A is
Matrix \( B = (b_{ij})_{m \times n }\) is determined after normalization of raw data matrix A. Where bij is the normalized value of the jth evaluation object in the ith evaluation criterion, \( b_{ij} \in [0,1] \), j = 1, 2, …, n. Moreover, for profitability indicators (positive indicators), there are
For cost indicators (negative indicators), there are
Among the evaluation problems with m evaluation criteria and n evaluation objects, the entropy definition of the ith evaluation criterion is
where
After defining the entropy of the ith evaluation criterion, the definition of the entropy weight of the ith evaluation criterion can be obtained.
where
Appendix B: Profits under non-cooperative game
Appendix C: Profits under cooperative decision-making
Appendix D: Pseudocodes of algorithm core process
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Liu, A., Luo, S., Mou, J. et al. The antagonism and cohesion of the upstream supply chain under information asymmetry. Ann Oper Res 329, 527–572 (2023). https://doi.org/10.1007/s10479-020-03881-5
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DOI: https://doi.org/10.1007/s10479-020-03881-5