Analysis of supplier-buyer lot-sizing game model and demand fluctuation under stochastic demand

Abstract

The study of supply-demand is one of the most important issues in supply chain. Supply-demand relationship goes through the whole supply chain network. This paper analyses the lot-sizing model in stochastic demand non-cooperation non-discount game. One partner may be in an optimal condition in this model, but the other and whole supply chain are not. To improve this scene and optimize the whole supply chain and attain the win-win goal, a Stackelberg price-discount game model, cooperative game model and benefits-distributed mechanism were proposed in this paper. Lot sizing model for Buyer-Supplier under random demand environment is simulated and analyzed through a numerical example. That buyer-Supplier and supply chain's benefits are influenced by demand fluctuation is analyzed.