Impact of Wholesale and Retail Limits on Supply Chain Decision Strategies: Insights from Serious Gaming Experiments

Tight wholesale and retail limits are often considered as major contributors to food loss in Japan. However, relaxing these limits can have complex implications because they are influenced by the operational decisions of key supply chain actors, such as manufacturers and retailers. Game theory analysis offers a systematic approach to characterizing decision-making processes; however, defining a concise strategy space is crucial. To facilitate this, our study conducted an exploratory analysis using data from serious gaming experiments, specifically the “Milky Chain Game,” to characterize player strategies. Our findings suggest that safety-stock levels and initial pricing are key strategy dimensions for both manufacturers and retailers. Additionally, eliminating wholesale limits increases manufacturers’ stock levels, resulting in shorter milk carton lifespans for retailers, and potentially counteracting the intended effects of relaxation. Future research directions should include conducting deeper analyses with larger sample sizes.