Dynamic Reconfiguration of Leadership in Multi-Period Supply Chain Planning

In the beginning of the market, it is necessary to flexibly respond to the change to make an optimal decision-making when the market power leadership can be easily changed. For supply chain decision-making, game theoretical approaches are widely used to analyze the effect of the leader-follower relationship. However, most conventional studies assume that the leader-follower relationship for multiple companies are treated as constant in all time periods. In this paper, a multi-period supply chain planning model that can change the relation of supply chain over time periods is developed. The model comprises one regular manufacturer, one newcomer manufacturer and one retailer. The effects of the change of leader-follower relationship are investigated for dynamic reconfiguration of the multi-period production planning problem with a newcomer manufacturer from computational experiments. (C) 2018 The Author(s). Published by Elsevier B.V.