Coordination Strategies for Vacating a Parking Lot

This study explores the coordination issues that may arise in the first-mile logistics of the automotive industry when a production plant requires the services of an independent transportation company to vacate a parking lot. The interaction between the previous agents as a simultaneous game where they have the same strategies, but opposite preferences is modeled. In such a case, it is shown that coordination issues happen because of multiple Nash equilibria; each equilibrium benefits one agent and harms the other. Since agents do not have incentives to deviate from their Nash equilibrium strategies, some mechanisms based on incentives, information sharing, and vendor management to induce a unique Nash equilibrium are discussed. So, such mechanisms contribute to facilitating coordination in the first-mile logistics of the automotive industry.