Logistics networks: A game theory application for solving the transshipment problem

As competition from emerging economies such as China and India puts pressure on global supply chains and as new constraints emerge, it presents opportunities for approaches such as game theory for solving the transshipment problem. In this paper we use the well-known Shapley value concept from cooperative game theory as an approach to solve the transshipment problem for maintaining stable conditions in the logistics network. A numerical example is presented to show the usefulness of this approach.