Stackelberg scheme in vendor – buyer inventory model for imperfect quality product with partial backordering. (June 2020)

• Record Type: Journal Article
• Authors: Setiawan, R; Chrisnawati, H E
• Is Part Of: Journal of physics. Volume 1567:Number 2(2020)
• Publication Date: 2020-06
• Subjects: Physics -- Congresses; 530.5
• DOI: 10.1088/1742-6596/1567/2/022078
• Languages: English
• ISSNs: 1742-6588

Abstract

Abstract: In this paper, several new mathematical analysis approaches in probabilistic inventory model which incorporate both imperfect quality items existence and lead-free demands are proposed using non-cooperative games. Considered the monopolistic relationship between vendor and buyer in some real inventory problem, the vendor is set to be a leader who determines the Stackelberg's optimal move after observing the optimal responses from the buyer as a follower. Optimum condition using Karush – Khun – Tucker conditions is applied with Stackelberg scheme to get optimum value of the system.