Coordination in vendor-buyer inventory systems: on price discounts, Stackelberg game and joint optimisation
type: Item
instance of: scholarly article
title: Coordination in vendor-buyer inventory systems: on price discounts, Stackelberg game and joint optimisation
zbMATH Open document ID: 1169.90383
DOI: 10.1504/IJOR.2009.026246
author: N. E. Zubov
published in: International Journal of Operational Research
publication date: 2009-09-13T00:00:00Z
review text: Summary: We consider a version of the Stackelberg game that is used to model discount pricing decisions in vendor-buyer supply chains. The game consists of a leader who is selling a product to one (or more) \textit{follower(s)} who in turn sell it to the ultimate consumers. We define \textit{conditional strategy} for the leader as a strategy where the transfer price offered by the leader is conditional upon the specific decision taken by the follower. We show that the leader's optimal conditional strategy can achieve perfect coordination. We then discuss the application of the result to specific models for discount pricing decisions in vendor-buyer inventory systems and interpret its implications for these models.
Mathematics Subject Classification ID: 90B50
zbMATH DE Number: 5603416
zbMATH Keywords: vendor-buyer inventory systems
zbMATH Keywords: coordination
zbMATH Keywords: Stackelberg game
zbMATH Keywords: quantity discounts
zbMATH Keywords: volume discounts
zbMATH Keywords: joint optimisation
zbMATH Keywords: discount pricing
MaRDI profile type: Publication
full work available at URL: ijor.2009.026246
OpenAlex ID: W2162674724
description: scientific article; zbMATH DE number 5603416