The formation of supply chain strategy alliance and the proper allocation of revenue (cost)are very important to supply chain management. In this project, we will apply cooperative games theory and methods to formation of alliance and allocation mechanism design. These mechanisms can guarantee that the members in the alliance continue to improve efficiency, reduce cost to maximize the supply chain's profit and allocate the profit properly. We first study the fairness, incentive and efficiency of the EOQ games, ELS games and Newsboy games. Then we generalize the models considering procurement discount, demand depending promotion and price, horizon cooperation to management disruption, and asymmetric information cooperative games. We will characterize the characteristic function and solution and design rational allocation policy and computational algorithms. Then some management insights are obtained to instruct firms to manage supply chain.

Efficient city logistics management plays an important role in the sustainable development of economy, society and environment in cities and our country. In this project, we are going to study some key problems for city logistics: city logistics demand forecast and its evolution, city logistics hub design and cooperative operation, coordinative logistics service operations based on emerging information technology(logistics resource integration and common distribution, ITS for city logistics, city express, etc.), performance evaluation and macro policy design for logistics system. We will investigate some performance mechanism and obtain managerial insights by using methods