Research on inventory game of supply chain based on credit coordination mechanism

Abstract

Nowadays, supply chain coordination has become the major concern problem in optimization cost, and inventory control is the main way to improve the performance or reduce cost. Based on cooperation and symmetry information, this paper builds up inventory control model for supplier and retailer system in which retailer is the core enterprise. Then, the supply chain realizes the optimal total cost through offering trade credit and obtains the Nash equilibrium policy and optimal ordering policy through discussing the game model. Finally, the efficiency of the policy is illustrated by a numerical example.