Game Theory
Hamed Jafari
Abstract
Purpose: In this research, a recyclable waste is used to manufacture a specific product. For this reason, a supply chain is considered containing manufacturer, recycler, and waste warehouse. First, the customers’ demand for the considered product is determined based on its price. Then, the manufacturer ...
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Purpose: In this research, a recyclable waste is used to manufacture a specific product. For this reason, a supply chain is considered containing manufacturer, recycler, and waste warehouse. First, the customers’ demand for the considered product is determined based on its price. Then, the manufacturer produces it from a waste with specific recyclability rate. The waste warehouse collects the waste and the recycler recycles it. The manufacturer meets his requirements through two different channels. He can procure the non-recycled waste from the waste warehouse and then recycles it himself, or can buy the recycled waste from the recycler. The manufacturer selects these channels based on the established situations.Methodology: The game theory is applied to make the decisions under two considered channels. In this setting, a Stackelberg game is developed based on the competitive situation established among the members, where the manufacturer has higher decision power than the waste warehouse and recycler.Findings: Eventually, the given strategies are discussed and the obtained results are presented. Results indicate that the manufacturer selects each channel as a threshold is met. Moreover, more recyclability rate of the considered waste leads to higher profits for the members.Originality/Value: In this research, to provide the waste materials required for producing a product, the game-theoretic approach as well as the concept of the channel-selection are used. It can be stated that this issue has been proposed for the first time in the literature.
Game Theory
Hamed Jafari
Abstract
Purpose: The purpose of this paper is to consider products such as disposable tableware produced from plastic waste. In this setting, plastic waste is collected, recycled, and reused. In this research, a supply chain including waste depot, recycler, and manufacturer is considered in which plastic waste ...
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Purpose: The purpose of this paper is to consider products such as disposable tableware produced from plastic waste. In this setting, plastic waste is collected, recycled, and reused. In this research, a supply chain including waste depot, recycler, and manufacturer is considered in which plastic waste is reused in order to manufacture a product. Under this supply chain, the waste depot collects non-recycled plastic waste and the recycler recycles it. Then, the manufacturer uses recycled plastic waste to produce final product and meet customer demand. In this structure, the waste depot, recycler, and manufacturer set the price of non-recycled plastic waste, the price of recycled plastic waste, and the price of final product, respectively.Methodology: The game theory is used to make the decisions under the considered supply chain. It is assumed that the decision power of the manufacturer is more than of the waste depot and recycler. In this setting, Stackelberg game-theoretic model is established in order to specify the prices adopted by the members.Findings: Results indicate that decision powers of the waste depot and recycler have no effect on the price and demand of final product. The profits allocated to the manufacturer are the same when decision powers of the waste depot and recycler are different. Moreover, more the price elasticity of the demand for final product leads to lower profits for the members.Originality/Value: Using plastic waste is an effective approach to sustain environment and reduce pollution. In this research, plastic waste is used to produce products such as disposable tableware in a supply chain including manufacturer, recycler and waste depot. The game theory approach is also used to make decisions. To our knowledge, the idea of applying the game theory to use plastic waste in production of products under the considered supply chain has been raised for the first time in the literature.