Using the Method of Mutual Preferences to Build Sustainable Relationships  Between Suppliers and Consumers in Supply Chains

V. Mironov; E. Abramova

doi:doi:10.12737/2587-9111-2023-11-3-50-62

UDC 658.7

Using the Method of Mutual Preferences to Build Sustainable Relationships Between Suppliers and Consumers in Supply Chains

Published в Scientific Research and Development. Economics · Volume 11, Issue 3, 2023 · Pages 50–62 · Rubrics: Management

DOI 10.12737/2587-9111-2023-11-3-50-62

Received: 03.04.2023 Accepted: 14.04.2023 Published: 07.07.2023

Authors

V. Mironov ¹ · E. Abramova ²

1 Academy of National Economy and Public Administrarion under the President of the Russian Federation (Department of Quantitative Methods Applied to Management, Associate Professor)
Russian Federation

2 Plekhanov Russian University of Economics (Department of Business and Logistics, Associate Professor)
Moskva, Moscow, Russian Federation

ABSTRACT

The purpose of the proposed article was to apply the method of mutual preferences to build sustainable relationships between suppliers and consumers in the CP under the conditions of both competitive and partner interaction strategies. The use of the proposed method is based on the application of the Gale-Shapley algorithm. The article presents an algorithm that allows you to build a stable relationship in the case when suppliers and consumers interact according to the «many-to-many» principle, which assumes that both suppliers and consumers are allowed to cooperate with several counterparties at once and consumer quotas are set and suppliers. The considered case is especially relevant in the context of the diversity of economic relations between the participants of the CP. According to the authors, the implementation of the proposed approach will allow companies to objectively determine the economic feasibility of forming supplier-consumer pairs, subject to the choice of reasonable priorities, taking into account mutual preferences, as well as using a set of incentive measures to consolidate sustainable partnerships in the DP.

KEYWORDS

supplier and consumer preferences stable communication Gale-Shapley algorithm many-to-many algorithm preferences with indifferences strategic partnerships in supply chains supplier selection joint planning competitive relationship strategy logistics costs supplier incentives

Information References

Authors:

1. Academy of National Economy and Public Administrarion under the President of the Russian Federation (Department of Quantitative Methods Applied to Management, Associate Professor)

Russian Federation

2. Plekhanov Russian University of Economics (Department of Business and Logistics, Associate Professor)

Moskva, Moscow, Russian Federation

Type:

Article

Pages:

from 50 to 62

Status:

Published

Subject area:

UDC 658.7

Language:

Russian

Keywords:

supplier and consumer preferences, stable communication, Gale-Shapley algorithm, many-to-many algorithm, preferences with indifferences, strategic partnerships in supply chains, supplier selection, joint planning, competitive relationship strategy, logistics costs, supplier incentives

References

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