Competitive and cooperative inventory policies in a two-stage supply chain

Journal Article (Journal Article)

The difference between global/cooperative and independent/competitive optimization in a serial supply chain with one suppliers and one retailer is studied. Two games are considered. It is shown that the games have a unique Nash equilibrium. Further, it is demonstrated that the system optimal solution can be achieved as a Nash equilibrium using simple linear transfer payments.

Full Text

Duke Authors

Cited Authors

  • Cachon, GP; Zipkin, PH

Published Date

  • January 1, 1999

Published In

Volume / Issue

  • 45 / 7

Start / End Page

  • 936 - 953

International Standard Serial Number (ISSN)

  • 0025-1909

Digital Object Identifier (DOI)

  • 10.1287/mnsc.45.7.936

Citation Source

  • Scopus