Managing interconnected production in a dynamic network a fair gain-sharing collaborative solution

This paper presents an analysis on the optimal management of interconnected production networks Collaboration represents the best possibility of achieving a group optimal solution that enhances payoffs of the companies in a network. Since companies are not identical, some of them may capture substantially less gain through interconnection than their contributions to other providers. An optimality principle in gain-sharing that reflects the contributions of the participating companies is needed. This paper developed a novel dynamic fair gain-sharing solution for interconnected production networks that fulfills the requirements of a sustainable scheme — individual rationality, group optimality, time consistency and fair-sharing principle.