Coordination by sharing demand forecasts in a supply chain using game theoretic approach

Through the literature, authors give a considerable attention to game theory because of its wide range of applications in various fields including economics, political science, psychology or biology. The aim of this case study is to employ game theoretic approach to model information sharing as a coordination mechanism in a basic two-echelon supply chain composed of a single retailer and a single supplier. This paper is the sequel of previous works; where demand is forecasted based on historical data of a supermarket in Morocco using the Multi Layer Perceptron structure of the artificial neural networks. Nevertheless, this work focuses on the implementation of the obtained forecasting results in the studied system modeled as a game of two players with asymmetric and imperfect information, in order to find the equilibrium of the game that guaranties maximum payoff for both players. In fact, this is what game theory is all about.