Game Theory Approach to Determine Economic Order Quantity of Probabilistic Two-Level Supply Chain for Deteriorating Item with Time Dependent Holding Cost

摘要

Supply chain model for deteriorating item has different characteristics from the others. There is exist deterioration rate for those type of product, for instance like fresh meat, fruit and vegetable and fashion items. Deterioration of their product can reduce their profit, so inventory model must be cover deterioration aspect to get real model for the resources. In this paper inventory model for deterioration items is determined with some extend in time depending demand for holding cost. Economic Order Quantity (EOQ) is determined by equilibrium concept in Game Theory. EOQ is analyzed under the assumption that each parties of system take non-cooperative strategy.