TY - GEN
T1 - Evolutionary stability of a manufacturer-buyer VMI conduced supply chain
AU - Torres, Fidel
AU - Garcia Diaz, Cesar Enrique
AU - Rakoto-Ravalontsalama, Naly
PY - 2013
Y1 - 2013
N2 - The strategy of integration known as VMI (Vendor-Managed Inventory) allows the coordination of inventory policies between producers and buyers in supply chains. Based on a new proposed model for the implementation of VMI in a chain of two links composed of a producer and a buyer, this paper studies the evolution of individual strategies of the producer and the buyer by a formalism derived from the theory of evolutionary games. The conditions that determine the stability of evolutionarily stable strategies are derived and analyzed. Work results specify analytical conditions that favor the implementation of VMI on traditional chains without VMI.
AB - The strategy of integration known as VMI (Vendor-Managed Inventory) allows the coordination of inventory policies between producers and buyers in supply chains. Based on a new proposed model for the implementation of VMI in a chain of two links composed of a producer and a buyer, this paper studies the evolution of individual strategies of the producer and the buyer by a formalism derived from the theory of evolutionary games. The conditions that determine the stability of evolutionarily stable strategies are derived and analyzed. Work results specify analytical conditions that favor the implementation of VMI on traditional chains without VMI.
KW - Supply chain coordination
KW - game theory
KW - dynamic systems stability
M3 - Conference contribution
SP - 1
EP - 11
BT - Proceedings of the 24th Annual Production and Operations Management Conference, POMS 2013, Denver, Colorado
ER -