Open AccessStackelberg scheme in vendor – buyer inventory model for imperfect quality product with partial backordering
Author(s) -
Rubono Setiawan,
Henny Ekana Chrisnawati
Publication year - 2020
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1567/2/022078
Subject(s) - stackelberg competition , vendor , monopolistic competition , imperfect , mathematical optimization , quality (philosophy) , computer science , scheme (mathematics) , product (mathematics) , probabilistic logic , bilevel optimization , set (abstract data type) , operations research , mathematical economics , microeconomics , mathematics , optimization problem , economics , business , monopoly , artificial intelligence , marketing , mathematical analysis , linguistics , philosophy , geometry , epistemology , programming language
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.