Determining Decision Variables for Manufacturer and Retailer in the Co-operative and Noncooperative Environment: A Game Theory Approach

Several inventory models are proposed for manufacturer and retailer which include competition and cooperation between manufacturer and retailer to maximize their profits. Esmaeili M et al. (2009) developed the relationship between manufacturer and retailer for non-cooperative and cooperative games....

Full description

Saved in:
Bibliographic Details
Published inInternational journal of supply and operations management Vol. 7; no. 2; pp. 129 - 139
Main Authors Pundhir, Shiv Kumar Singh, Gupta, Anand Kumar, Kumar, Sandeep
Format Journal Article
LanguageEnglish
Published Tehran Kharazmi University 01.04.2020
Subjects
Game theory
Labor shortages
Manufacturing
Mathematical models
Retail stores
Retailing industry
Shortages
Studies
Online AccessGet full text

Cover

More Information
Summary:Several inventory models are proposed for manufacturer and retailer which include competition and cooperation between manufacturer and retailer to maximize their profits. Esmaeili M et al. (2009) developed the relationship between manufacturer and retailer for non-cooperative and cooperative games. But the model did not involve any shortage cost as no shortage was allowed. In this paper, the researcher considers market demand to be affected by marketing expenditure and price charged by retailer. This research allows shortages for the infinite planning horizon and investigates 1. The non-cooperative game for manufacturer-Stackelberg model allowing shortage when manufacturer is the leader and would like to maximize his profit, 2.retailer-stackelberg model when retailer is the leader and would like to maximize his profit, and 3.The co-operative game approach to obtain Pareto Efficient solution. The model is verified through some numerical examples.
ISSN:2383-1359
2383-2525