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Non-cooperative strategies for production and shipment lot sizing in one vendor-multi-buyer system

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  • Bylka, StanisLaw

Abstract

The supply chain structure examined in this paper consists of a single vendor (or manufacturer) with multiple heterogeneous buyers (or retailers). A continuous deterministic model is presented. To satisfy buyers demands, the vendor will deliver the product in JIT shipments to each buyer. The production rate is constant and sufficient to meet the buyers' demands. The product is shipped in discrete batches from the vendor's stock to buyers' stocks and all shipments are realized instantaneously. Special production-replenishment policies of the vendor and the buyers are analyzed. That is, the production batch is transferred to each buyer in several sub-batches in each production distribution cycle (PDC). This paper offers game model without prices, where agents minimize individual costs. It is a non-cooperative (1+N)-person game model with agents (a single vendor and N-buyers) choosing numbers and sizes of transferred batches. The model describes inventory patterns and cost structure of PDC. It is proved that there exist Nash equilibria in several types of sub-games of the considered game.

Suggested Citation

  • Bylka, StanisLaw, 2011. "Non-cooperative strategies for production and shipment lot sizing in one vendor-multi-buyer system," International Journal of Production Economics, Elsevier, vol. 131(1), pages 372-382, May.
    • Handle: RePEc:eee:proeco:v:131:y:2011:i:1:p:372-382
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    References listed on IDEAS

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    1. Bylka, Stanislaw, 2003. "Competitive and cooperative policies for the vendor-buyer system," International Journal of Production Economics, Elsevier, vol. 81(1), pages 533-544, January.
    2. Ertogral, K. & Darwish, M. & Ben-Daya, M., 2007. "Production and shipment lot sizing in a vendor-buyer supply chain with transportation cost," European Journal of Operational Research, Elsevier, vol. 176(3), pages 1592-1606, February.
    3. Abdul-Jalbar, Beatriz & Gutierrez, Jose M. & Sicilia, Joaquin, 2007. "An integrated inventory model for the single-vendor two-buyer problem," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 246-258, July.
    4. Bylka, Stanislaw, 2009. "Non-cooperative strategies for production and shipments lot sizing in the vendor-buyer system," International Journal of Production Economics, Elsevier, vol. 118(1), pages 243-252, March.
    5. Banerjee, Avijit & Kim, Seung-Lae & Burton, Jonathan, 2007. "Supply chain coordination through effective multi-stage inventory linkages in a JIT environment," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 271-280, July.
    6. Chan, Chi Kin & Kingsman, Brian G., 2007. "Coordination in a single-vendor multi-buyer supply chain by synchronizing delivery and production cycles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 90-111, March.
    7. David, Israel & Eben-Chaime, Moshe, 2003. "How far should JIT vendor-buyer relationships go?," International Journal of Production Economics, Elsevier, vol. 81(1), pages 361-368, January.
    8. Jiafu Tang & Kai-Leung Yung & Iko Kaku & Jianbo Yang, 2008. "The scheduling of deliveries in a production-distribution system with multiple buyers," Annals of Operations Research, Springer, vol. 161(1), pages 5-23, July.
    9. Kelle, Peter & Al-khateeb, Faisal & Anders Miller, Pam, 2003. "Partnership and negotiation support by joint optimal ordering/setup policies for JIT," International Journal of Production Economics, Elsevier, vol. 81(1), pages 431-441, January.
    10. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2006. "Buyer vendor coordination models in supply chain management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 1-15, November.
    11. Siajadi, Hans & Ibrahim, Raafat N. & Lochert, Paul B., 2006. "Joint economic lot size in distribution system with multiple shipment policy," International Journal of Production Economics, Elsevier, vol. 102(2), pages 302-316, August.
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    Cited by:

    1. Sarker, Bhaba R., 2014. "Consignment stocking policy models for supply chain systems: A critical review and comparative perspectives," International Journal of Production Economics, Elsevier, vol. 155(C), pages 52-67.
    2. Davide Castellano & Mosè Gallo & Liberatina C. Santillo, 2021. "A periodic review policy for a coordinated single vendor-multiple buyers supply chain with controllable lead time and distribution-free approach," 4OR, Springer, vol. 19(3), pages 347-388, September.
    3. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2018. "Collaborative replenishment in the presence of intermediaries," European Journal of Operational Research, Elsevier, vol. 266(1), pages 135-146.

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