Centralized and Competitive Inventory Models With Demand Substitution

A standard problem in operations literature is optimal stocking of substitutable products. We consider a consumer-driven substitution problem with an arbitrary number of products under both centralized inventory management and competition. Substitution is modeled by letting the unsatisfied demand for a product flow to other products in deterministic proportions. We obtain analytically tractable solutions that facilitate comparisons between centralized and competitive inventory management under substitution. For the centralized problem we show that, when demand is multivariate normal, the total profit is decreasing in demand correlation

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

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

Buyback and return policies for a book publishing firm = Egy könyvkiadó vállalat visszavásárlási stratégiája

A dolgozat célja egy vállalati gyakorlatból származó eset elemzése. Egy könyvkiadót tekintünk. A kiadó kapcsolatban van kis- és nagykereskedőkkel, valamint a fogyasztók egy csoportjával is vannak kapcsolatai. A könyvkiadók projekt rendszerben működnek. A kiadó azzal a problémával szembesül, hogy hogyan ossza el egy frissen kiadott és nyomtatott könyv példányszámait a kis- és nagykereskedők között, valamint mekkora példányszámot tároljon maga a fogyasztók közvetlen kielégítésére. A kiadóról feltételezzük, hogy visszavásárlási szerződése van a kereskedőkkel. A könyv iránti kereslet nem ismert, de becsülhető. A kis- és nagykereskedők maximalizálják a nyereségüket. = The aim of the paper is to analyze a practical real world problem. A publishing house is given. The publishing firm has contacts to a number of wholesaler / retailer enterprises and direct contact to customers to satisfy the market demand. The book publishers work in a project industry. The publisher faces with the problem how to allocate the stocks of a given, newly published book to the wholesaler and retailer, and to hold some copies to satisfy the customers direct from the publisher. The publisher has a buyback option. The distribution of the demand is unknown, but it can be estimated. The wholesaler / retailer maximize the profits. The problem can be modeled as a one-warehouse and N-retailer supply chain with not identical demand distribution. The model can be transformed in a game theory problem. It is assumed that the demand distribution follows a Poisson distribution

Analysis of the revenue-sharing contract under different power structures with application in the biodiesel niche market

Master'sMASTER OF ENGINEERIN

Money, credit, banking, and payments system policy

This article employs contract theory to analyze the evolution of the payments system. Insights gained are used subsequently to evaluate three prominent public payments system policies: monetary policy, central bank lending, and deposit insurance.Payment systems

Money, credit, banking, and payments system policy

This article employs contract theory to analyze the evolution of the payments system. Insights gained are used subsequently to evaluate three prominent public payments system policies: monetary policy, central bank lending, and deposit insurance.Payment systems

Application of game theory in inventory management

Game theory has been successfully applied in supply chain management problems due to its capacity of modeling situations where companies have to make strategic decisions about their production planning, inventory control and distribution systems. In particular, this article presents the application of game theory in inventory management. First, we presente the basics concepts of non-cooperative and cooperative game theory. Then, we present inventory models by means of game theory. For each model, we provide its configuration, the solution concept implemented, and the existence and uniqueness of the equilibrium used.Sociedad Argentina de Informática e Investigación Operativa (SADIO

Large Newsvendor Games

We consider a game, called newsvendor game, where several retailers, who face a random demand, can pool their resources and build a centralized inventory that stocks a single item on their behalf. Profits have to be allocated in a way that is advantageous to all the retailers. A game in characteristic form is obtained by assigning to each coalition its optimal expected profit. A similar game (modeled in terms of costs) was considered by Muller et al. (2002), who proved that this game is balanced for every possible joint distribution of the random demands. In this paper we consider newsvendor games with possibly an infinite number of newsvendors. We prove in great generality results about balancedness of the game, and we show that in a game with a continuum of players, under a nonatomic condition on the demand, the core is a singleton. For a particular class of demands we show how the core shrinks to a singleton when the number of players increases.newsvendor games, nonatomic games, core, balanced games.

Application of game theory in inventory management

Game theory has been successfully applied in supply chain management problems due to its capacity of modeling situations where companies have to make strategic decisions about their production planning, inventory control and distribution systems. In particular, this article presents the application of game theory in inventory management. First, we presente the basics concepts of non-cooperative and cooperative game theory. Then, we present inventory models by means of game theory. For each model, we provide its configuration, the solution concept implemented, and the existence and uniqueness of the equilibrium used.Sociedad Argentina de Informática e Investigación Operativa (SADIO

TECHNICAL NOTE—Robust Newsvendor Competition Under Asymmetric Information

We generalize analysis of competition among newsvendors to a setting in which competitors possess asymmetric information about future demand realizations, and this information is limited to knowledge of the support of demand distribution. In such a setting, traditional expectation-based optimization criteria are not adequate, and therefore we focus on the alternative criterion used in the robust optimization literature: the absolute regret minimization. We show existence and derive closed-form expressions for the robust optimization Nash equilibrium solution for a game with an arbitrary number of players. This solution allows us to gain insight into the nature of robust asymmetric newsvendor competition. We show that the competitive solution in the presence of information asymmetry is an intuitive extension of the robust solution for the monopolistic newsvendor problem, which allows us to distill the impact of both competition and information asymmetry. In addition, we show that, contrary to the intuition, a competing newsvendor does not necessarily benefit from having better information about its own demand distribution than its competitor has