Evolutionary dynamics of two-actor VMI-driven supply chains
Fidel Torres () and
César García-Díaz ()
Additional contact information
Fidel Torres: Universidad de los Andes
César García-Díaz: Universidad de los Andes
Computational and Mathematical Organization Theory, 2018, vol. 24, issue 3, No 3, 377 pages
Abstract The strategy of integration known as vendor-managed inventory (VMI), which allows the coordination of inventory policies between producers and buyers in supply chains, has long been considered a strategy for inventory cost reduction. Although the literature acknowledges the importance of understanding the dynamics of VMI implementation through evolutionary games, research in this topic still remains scarce. This paper studies the dynamics of strategic interaction of a producer–buyer supply chain under a newly developed VMI scheme, which makes use of a synchronization mechanism between the buyer and the producer replenishment cycles. By using this alternative VMI representation, we obtain the mathematical conditions that determine the degree of stability of evolutionarily stable strategies. As other evolutionary game theoretical approaches, we also find a lower bound for penalty costs that ensures a VMI contract, but most importantly, we also find how a VMI implementation might depend on the difference between production and demand rates, regardless of any penalty costs.
Keywords: Dynamical systems stability; Evolutionary game theory; Supply chain coordination; Vendor-managed inventory (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10588-017-9259-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:comaot:v:24:y:2018:i:3:d:10.1007_s10588-017-9259-z
Ordering information: This journal article can be ordered from
Access Statistics for this article
Computational and Mathematical Organization Theory is currently edited by Terrill Frantz and Kathleen Carley
More articles in Computational and Mathematical Organization Theory from Springer
Bibliographic data for series maintained by Sonal Shukla ().