STACKELBERG GAME APPROACH FOR PRESERVATION OF MULTI-ITEMS INVENTORY SYSTEM FOR TRENDED-DEMAND WITH MAXIMUM LIFETIME AND ALLOWABLE CREDIT PERIOD

Abstract

In this paper, an inventory system having trended demand comprising of a single manufacturer and single retailer for multi-items is considered. The manufacturer offers a credit period to the retailer to boost the demand in the market. The units in inventory are
deteriorating and have a maximum lifetime. To increase the life of units in the model manufacturer invests in preservation technology. Our objective is to minimize the total cost of the players involved in a supply chain using the Stackelberg game approach. Numerical examples show how a joint decision is beneficiary to reducing the total cost of the supply chain. Managerial insights are provided using sensitivity analysis.