Application of a practical game theory model in quality management based on a two-supplier zero-sum model with mixed strategies using a spreadsheet

Abstract

Negotiation is undoubtedly an activity that people must learn for daily use, in personal and professional life. In the world of business sciences, we can see examples of the application of game theory, and how it has allowed finding solutions to complex problems. This theoretical and explanatory article aims to show the application of operations research in quality management, by showing how game theory can help in the analysis of supplier selection in an organization. The reader is presented with a basic example for solving a zero-sum game problem with mixed strategies between suppliers, and how from the formulation of the model in a spreadsheet. It is concluded that the application of game theory in quality management, specifically in the supplier selection process, provides a valuable tool for making informed and strategic decisions, thus improving the quality of the products or services offered by the organization, as it allows for a deeper analysis, efficient negotiation, and lower risks.