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A framework for accessing the equilibrium point of a multi-objective decision-making (MODM): a case study

Soft Computing volume 27, pages 3151–3167 (2023)Cite this article

Abstract

In recent years, equilibrium is the most generally used solution concept in game theory. This idea may be a state-of-the-art interpretation of a method game. Each player has an accurate prediction of other players’ behavior and acts consistent with such a rational prediction. This paper aims to apply the game theory idea of equilibrium as a decision-making tool to develop a simple method for solving a multi-objective decision-making problem with any number of players to achieve an equilibrium point. Game theory and Nash equilibrium have been used to determine the equilibrium point of multi-objective decision-making problems of production planning in non-cooperative environments. A mixed and conditional N-player model was proposed as a development of the Nash model. The method was applied to a second-square planning problem with multiple constrained objectives (with linear constraints) in order to allocate a larger share of the sales market in a situation where all objectives were in conflict with each other. Effective solutions were first obtained using the bl constraint method, and then, an effective equilibrium point was extracted using the proposed method. Since the problem-solving method was discrete, the effective equilibrium point was reduced, and the results were used for making decisions about six products in the competitive market.

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Acknowledgements

The authors are sincerely thankful to the esteemed Editor and reviewers for their comments and suggestions based on which the manuscript has been improved.

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Authors and Affiliations

  1. Department of Industrial Engineering, Najafabad Branch, Islamic Azad University, Najafabad, Iran

    Mansour Abedian

  2. Department of Industrial Engineering, Golpayegan University of Technology, Golpayegan, Iran

    Javid Jouzdani

  3. Department of Industrial Engineering, Yazd University, Yazd, Iran

    AmirHossein Karimpour

  4. Department of English Language, Najafabad Branch, Islamic Azad University, Najafabad, Iran

    Maryam Hejazi

Authors
  1. Mansour Abedian
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  2. Javid Jouzdani
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  3. AmirHossein Karimpour
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Correspondence to Mansour Abedian.

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Abedian, M., Jouzdani, J., Karimpour, A. et al. A framework for accessing the equilibrium point of a multi-objective decision-making (MODM): a case study. Soft Comput 27, 3151–3167 (2023). https://doi.org/10.1007/s00500-022-07507-9

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  • DOI: https://doi.org/10.1007/s00500-022-07507-9

Keywords

  • Production planning
  • Multi-objective decision-making (MODM)
  • Game theory
  • Nash solution
  • Equilibrium