Using Game Theory in Analyzing The Supply Chain With The Customer Market Approach. (Case Study: Fars Cement).

One of the challenges facing the cement industry today, managing the supply chain. Lack of supply chain management, the cement industry has serious problems volatility and the price difference by the manufacturer and the retailer has faced. Usually when a lack of resources and goods in a retail occurs, the customer may go to another retailer. This phenomenon is often called the customer search behavior. This study analyzes a manufacturer and two retailers in a two-echelon supply chain using game theory (Nash equilibrium, balance Stackelberg) with the customer market approach to fars cement industry. The method for the purpose of collecting data item. Enjoying the view of experts, information available on the main site Fars and determine the parameters of the model and software Mathematica functions to solve mathematical equations and plot discussed. The results of this study show that with current conditions and utility functions defined for the issue, to determine wholesale prices for producers in order to maximize profits Is not their own, so the manufacturer must consider market conditions to determine the wholesale price.