Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

Research of Problem of Supply Economic Lot-sizing of Enterprise Supply Chain Based on the Games Theory

Author LiJing
Tutor HuDaWei
School Chang'an University
Course Business management
Keywords Supply chain game theory queuing theory markov process economic lot size dynamic programming
CLC F224
Type Master's thesis
Year 2011
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China is recognized as manufacturing power in the world, gradually automobile manufacturing is superior to major industries of china along with China’s accession to the WTO, and it plays a big role in the China’s Manufacturing, in future development, the car industry will gradually influence and boost China’s economy. With the development of society, the competition between manufacturing industry is gradually transformed into the one among the supply chain. For the automobile manufacturing, it cannot leave supply chain and survive and need effective coordination and cooperation between members in the supply chain to help it to grow and improve overall benefit of the whole car industry.The main objective of each participant is to optimize its production and supply strategy, improve the overall performance and reduce risks through cooperation in the supply chain. In the supply chain of automobile manufacturing, it mainly involves horizontal and vertical cooperation, firstly this paper combine the queuing theory with game theory to explain the process of vertical cooperation between supplier, manufacturer and customers in supply chain, so using queuing theory to built M/M/1 model in the supply chain, and from customer, suppliers and manufacturers perspective, using game theory to analyzes the reached cooperation contract problem of participant based on this model, its purpose is to assess the efficiency of different kinds of contract between industry partners in the supply chain.Secondly,the economic order quantity (EOQ) model is applied to promote a new economic lot size model, and putting the idea of cooperative game into the new economic lot size model. it use the game theory, the economic order quantity theory and dynamic programming of operational research theory to analyze horizontal cooperation between retailers in economic lot size model of the supply chain, and reducing their ordering cost by joint orders instead of individual orders, and can reduce production costs of manufacturers. So for building economic lot size cooperative game model, and using Wagner-Whitin (dynamic programming) algorithm to solve the model, and the mutual cooperation between retailers is beneficial to all parties, it is can realize total profit maximization and total cost minimization in the supply chain. And showing that this model and relevant method of this paper is reasonable and effective through the relevant case analysis and economic lot size cooperative game balanced analysis, and the innovation of this paper is that the game theory and operational research used to solve related problems concerning economic lot size in the supply chain.

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