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

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.