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A review of non-cooperative newsvendor games with horizontal inventory interactions

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  • Silbermayr, Lena

Abstract

There are numerous applications of game theory in the analysis of supply chains where multiple actors interact with each other in order to reach their own objectives. In this paper we review the use of non-cooperative game theory in inventory management within the newsvendor framework describing a single period inventory control model with the focus on horizontal interactions among multiple independent newsvendors. We develop a framework for identifying these types of horizontal interactions including, for example, the models with the possibility of inventory sharing via transshipments, and situations with substitutable products sold by multiple newsvendors. Based on this framework, we discuss and relate the results of prior research and identify future research opportunities.

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  • Silbermayr, Lena, 2020. "A review of non-cooperative newsvendor games with horizontal inventory interactions," Omega, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:jomega:v:92:y:2020:i:c:s0305048318313409
    DOI: 10.1016/j.omega.2019.102148
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    3. Crönert, Tobias & Martin, Layla & Minner, Stefan & Tang, Christopher S., 2024. "Inverse optimization of integer programming games for parameter estimation arising from competitive retail location selection," European Journal of Operational Research, Elsevier, vol. 312(3), pages 938-953.
    4. He, Shuang & Zhang, Jian & Zhang, Juliang & Cheng, T.C.E., 2022. "Production/inventory competition between firms with fixed-proportions co-production systems," European Journal of Operational Research, Elsevier, vol. 299(2), pages 497-509.
    5. Silbermayr, Lena & Waitz, Martin, 2024. "Omni-channel inventory management of perishable products under transshipment and substitution," International Journal of Production Economics, Elsevier, vol. 267(C).
    6. Cheng, Lihong & Guo, Xiaolong & Li, Xiaoxiao & Yu, Yugang, 2022. "Data-driven ordering and transshipment decisions for online retailers and logistics service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    7. Derhami, Shahab & Montreuil, Benoit & Bau, Guilhem, 2021. "Assessing product availability in omnichannel retail networks in the presence of on-demand inventory transshipment and product substitution," Omega, Elsevier, vol. 102(C).

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