Abstract
This paper firstly talk about the general condition for Pareto optimality in the VMI system where non-cooperation game occurs considering pricing, production capacity and raw material procurement. Secondly the feasible set for Pareto optimality based on the Stackelberg equilibrium is developed. Thirdly we proposed a Nash bargaining model that can realize the Pareto optimality for the manufacturer and all retailers. Lastly a numerical example is given to illustrate the theory that the cooperation makes the enterprises' net profit increased significantly.
| Original language | English |
|---|---|
| Pages (from-to) | 1-7 |
| Number of pages | 7 |
| Journal | Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice |
| Volume | 25 |
| Issue number | 4 |
| Publication status | Published - Apr 2005 |
| Externally published | Yes |
Keywords
- Bargaining; VMI
- Logistic system management
- Lot-sizing
- Pareto optimality
ASJC Scopus subject areas
- Control and Systems Engineering
- Modelling and Simulation
- Economic Geology
- Computer Science Applications