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Supply Chain With Inventory Review and Dependent Demand Distributions: Dynamic Inventory Outsourcing

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4 Author(s)
Konstantin Kogan ; Dept. of Interdiscipl. Studies, Bar-Ilan Univ., Ramat-Gan, Israel ; Sheldon Lou ; Charles S. Tapiero ; Matan Shnaiderman

In this paper, we consider inventory outsourcing by a producer to a distributor. The distributor charges a cost for each unit it handles and the manufacturer responds with a production and inventory policy over a finite contract period. As a result, the two parties enter a noncooperative differential game. We address the effect of information asymmetry in such a game under a stochastic demand when the inventory level can only be observed by the manufacturer intermittently.

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IEEE Transactions on Automation Science and Engineering  (Volume:7 ,  Issue: 2 )