A Solution For Transshipment Problem With Game Theory Approach

Transshipment problem often confused with transportation problem. a transportation problem just allows products directly shipments from supply points to demand points, but a transshipment problem allows them in to supply points and demand points each other. the aim of transportation problem is to find the best way to fulfill the want of demand points using the capacities of supply points. while trying to find the best way, a variable cost of shipping the product should be taken into consideration. the purpose of this paper is to present an approach for transshipment problem with game theory. shapley value method was used to solve the problem. in this study, logistic network structure is discussed including with two suppliers, one distribution center and two customers. in addition, the best strategy is determined with three sub games that are non-cooperative, selected cooperative and cooperative environment. this study may able to be guide character for decision makers how to take a proper position according to supply chain strategies. as a result, this paper presents effective solution suggestion traditional network against shapley value with three players and cooperative environment.