Game theory-based study on collaboration planning model for supply chain

A collaboration planning model (CPM) is established on the basis of the idea of supply chain management (SCM) and the cooperative partnership of upstream and downstream in a supply chain. The collaboration among an enterprise and its strategic partners is determined with such external factors as price and inventory taken into consideration. The applications of both Nash equilibrium of dynamic game and bargaining game theory to CPM are discussed respectively. The possibility and feasibility of attaining the goal of win-win and the conditions required are discussed for the cooperative enterprises of upstream and downstream in SCM. The simulation results verified the effectiveness of the model and algorithm