A Stackelberg game in a production-distribution system with multiple buyers

• Authors: Stanisław BYLKA
• Languages of publication: EN

Abstracts

EN

This paper investigates the coordination of deliveries between a vendor (or manufacturer) and multiple heterogeneous buyers (or retailers) in a two-level supply chain with a decentralized decision process. A continuous deterministic model is presented. To satisfy the buyers’ demands, the vendor delivers the product in JIT shipments to each buyer. The buyers’ demands (continuous) have to be satisfied by the vendor. The production rate is constant and sufficient to meet the buyers’ demands. The product is delivered in discrete batches from the vendor’s stock to the buyers’ stocks and all shipments are realized instantaneously. A special class of production-delivery-replenishment policies of the vendor and the buyers are analyzed. In a competitive situation, the objective is to determine schedules, which minimize the individual average total cost of production, shipment and stockholding in the production-distribution cycle (PDC).

Keywords

EN

supply chain; constrained game; Stackelberg game

• Publisher: Politechnika Wrocławska. Oficyna Wydawnicza Politechniki Wrocławskiej
• Journal: Operations Research and Decisions
• Year: 2010
• Volume: 20
• Issue: 2
• Pages: 5-24

Contributors

author

Stanisław BYLKA

• Faculty Management and Command, National Defensy University, al. Gen. A. Chruściela 103, 00-910 Warsaw, Poland

References

• AUBIN J.-P., Optima and Equilibria. An Introduction to Nonlinear Analysis, Springer-Verlag, Berlin– Heidelberg 1993, GTM 140.
• BANERJEE A., A joint economic-lot-size model for purchaser and vendor, Decision Sciences, 1986, 17, 292–311.
• BANERJEE A., BURTON J.S., Coordinated vs. independent inventory replenishment policies for a vendor and multiple buyers, International Journal Production Economics, 1994, 35, 215–222.
• BYLKA S., Non-cooperative strategies for a production and shipment lot sizing in a vendor – multibuyers supply chain, [in:] Fifteenth International Working Seminar on Production Economics. Preprints, Vol. 1, Congress Innsbruck, Innsbruck, Austria, 2008, 121–132.
• BYLKA S., Non-cooperative strategies for production and shipments lot sizing in the vendor-buyer system, International Journal Production Economics, 2009, 118, 243–252.
• CHAN C.K., KINGSMAN B.G., Coordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles, Transportation Research, Part E, 2007, 43, 90–111.
• ERTOGRAL K., DARWISH M., BEN-DAYA M., Production and shipment lot sizing in a vendor-buyer supply chain with transportation cost, European Journal of Operational Research, 2007, 176, 1592–1606.
• GOYAL, S.K., An integrated inventory model for a single supplier single customer system, International Journal of Production Research, 1976, 14, 107–111.
• HILL R.M., The optimal production and shipment policy for the single-vendor single-buyer integrated production inventory problem, European Journal of Operational Research, 1999, 37, 2463–2475.
• KELLE P., AL-KHATEEB F., MILLER P.A., Partnership and negotiation support by joint optimal ordering/ setup policies for JIT, International Journal of Production Economics, 2003, 81–82, 431–441.
• LU L., A one vendor multi-buyer integrated inventory model, European Journal of Operational Research, 1995, 81, 312–324.
• SARMAH S.P., ACHARYA D., GOYAL S.K., Buyer vendor coordinated models in supply chain management, European Journal of Operational Research, 2006, 175, 1–15.
• SIAJADI H., IBRAHIM R.N., LOCHERT P.B., Joint economic lot size in distribution system with multiple shipment policy, International Journal of Production Economics, 2006, 102, 302–316.
• TANG J., YUNG K.-L., KAKU I., YANG J., The scheduling of deliveries in a production-distribution system with multiple buyers, Annals of Operations Research, 2008, 161, 5–23.
• YU Y., CHU F., CHEN H., A Stackelberg game and its improvement in VMI system with a manufacturing vendor, European Journal of Operational Research, 2009, 192, 929–948.
• ZAVANELLA Z., ZANONI S., A one-vendor multi-buyer integrated production-inventory model: The ‘Consignment Stock’ case, International Journal Production Economics, 2009, 118, 225–232