Game theory 'applied to supply chain issues'
06/07/2009 16:40:00
A new report applies game theory - commonly used in economics - to supply chain issues and transportation.
Supply chain issues and optimisation of transportation networks can be approached using game theory, according to Research and Markets.
Game theory is applied to transportation and supply chain issues as part of the organisation's new report Fragile Networks: Identifying Vulnerabilities and Synergies in an Uncertain World.
This branch of analytical mathematics describes the different ways that people or groups can behave in a given situation - such as a competitive game - and was popularised in the Russell Crowe film A Beautiful Mind, a biopic about American mathematician John Nash.
In Fragile Networks, it is used to assess the possible impacts that mergers and acquisitions can have on supply chains.
Meanwhile, the report also looks into the different supply chain issues that can arise from transportation itself - such as environmental impact and the total cost of ownership of the fleet.
The study goes on to generalise beyond supply chains to consider networks as a whole and establish general principles for decision-making and network efficiency optimisation.
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