Economic analysis of implementing VMI model using game theory

• Authors: Vojtěch Stehel , Marek Vochozka , Tomas Kliestik , Vladimir Bakes

Abstracts

EN

Research background: The article deals with implementing VMI between the supplier and customer. To assess whether the system will be implemented, the evolution game theory is used. The contribution is based on the limitations of the study of the evolutionary game theory approach to modelling VMI policies (Torres et al., 2014) and its later extension, The evolutionary game theory approach to modelling VMI policies (Torres & García-Díaz, 2018). It aims is to complement the studies and provide a comprehensive picture of the issue. Purpose of the article: The main objective of the contribution is to respond to the question whether the VMI system will be introduced between the supplier and customer. Methods: In the first phase, the matrix is analysed from the point of view of the game meaning and its limit parameters. The limit parameters are set taking into account the economic reality. The only examined states of the matrix are those where the result is not obvious. For the purposes of the contribution, we work with a 5-year period. A new software capable of calculating evolutionary focus and their stability is created. Sensitivity analysis is carried out for the individual parameters that affect the system behaviour. Findings & Value added: Value added is a complex description of the system and complementation of previous studies in this field. VMI is confirmed. The results obtained can be used for practical management, so that the managers are able to identify what the actual costs are and what the probability of introducing the system is. At the same time, they can identify the parameters that can be influenced by them and observe their impact on the shift of the system introduction probability.

Keywords

EN

VMI; game theory; sensitivity analysis

• Publisher: Instytut Badań Gospodarczych
• Journal: Oeconomia Copernicana
• Year: 2019
• Volume: 10
• Issue: 2
• Pages: 253-272

Dates

published

2019

Contributors

author

Vojtěch Stehel

• Institute of Technology & Business in Ceske Budejovice

• https://orcid.org/0000000292634478

author

Marek Vochozka

• Institute of Technology & Business in Ceske Budejovice

• https://orcid.org/0000000219386957

author

Tomas Kliestik

• University of Zilina

• https://orcid.org/0000000238155409

author

Vladimir Bakes

• University of Zilina

• https://orcid.org/0000000181860501

Identifiers

DOI

10.24136/oc.2019.013

Biblioteka Nauki

19090921