Capacity sharing in a network of independent factories: A cooperative game theory approach

Market changes, uncertainties and unpredictability characterize the market environment nowadays. The possibility to cooperate in a network allows companies to stay competitive. This paper proposes a game theory coordination mechanism for a network of independent plants; the approach is based on the OWEN's theorem properly simulated in order to investigate different performances in various environmental conditions. To support the network and face the capacity sharing issue, a Multi-Agent Architecture has been specifically developed. The simulation results show that the proposed mechanism could be considered a valid alternative to the more usual negotiation approaches in several market conditions. The plants gain considerable benefits by participating in a network supported by the cooperative mechanism proposed. (C) 2010 Elsevier Ltd. All rights reserved.