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Can anticipatory supply chain decision making manage the pandemic's effect? A regime switching game

Authors: Mukherjee AGanguly AKumar CChowdhury P


Affiliations

1 Concordia University, Montreal, Quebec, Canada.
2 O. P. Jindal Global University, Sonipat, Haryana, India.
3 RMIT University, Melbourne, Victoria, Australia.

Description

The COVID-19 pandemic has shown that stock outs of essential items like hand sanitizers, tissue papers and other items of hygiene and daily use have been characteristic of a supply chain, especially immediately following a pandemic wave. Consequently, retailers have to indulge in substantial supplier management efforts to ensure product availability during a pandemic wave. Using a piecewise deterministic differential game, we model a scenario where, while anticipating a pandemic wave, a supplier decides on product availability efforts to ensure product availability under the impending threat of stock outs. A market leader coordinating retailer, on the other hand, decides on the proportion of the costs of the efforts to be shared with the supplier.


Keywords: Pandemiccost-sharingdifferential gameproduct availabilitystochastic regime switching


Links

PubMed: https://pubmed.ncbi.nlm.nih.gov/38620785/

DOI: 10.1016/j.ifacol.2022.09.571