Online inventory problem with uncertain demand of supply chain
HAN Shu-guang1, GUO Jiu-ling1, FANG Chen-hao2, ZHANG Lu-ping1
1. School of Science, Zhejiang Sci-Tech University, Hangzhou 310018, China
2. Business School, East China University of Science and Technology, Shanghai 200237, China
Abstract A quantity discount problem between a manufacturer and two retailers was considered in this paper. For the demand of customer is uncertain, manufacturer adopted quantity discount policy to encourage retailers to increase the single order quantity thereby reducing inventory costs in decisionmaking problems. Combined with the retailer’s bargaining power, the cooperation situation between the two retailers and non-cooperative situation from the perspective of online algorithm and competitive analysis were considered. The corresponding equilibrium strategy is designed. The conclusion that the strategy is the optimal strategy is proved.
Received: 21 November 2013
Published: 10 June 2018
HAN Shu-guang, GUO Jiu-ling, FANG Chen-hao, ZHANG Lu-ping. Online inventory problem with uncertain demand of supply chain. Applied Mathematics A Journal of Chinese Universities, 2014, 29(3): 310-318.
