Choosing coordinated ordering policy in the two-level supply chain: A game theory approach

Supply chain management is a systematic analysis and logical decision-making system among the various functions of an organization, which results in cost effective in the flow of resources, raw materials, information, and liquidity. One of the few issues that are being considered is quantitative models for the buyer and supplier cooperation. In this paper, we try to formulate the buyer-supplier relationship with the game theory approach in two models non-cooperative and cooperative. In non-cooperative games, when the buyer has more power, he is considered to be the leader (Buyer Stackelberg) and in the second place the supplier is considered as the leader (supplier Stackelberg). The numerical analysis of the comparison between the existing models and the sensitivity analysis of the model shows the effect of the change of parameters on the cost and income. In non-cooperative games, when the buyer has more power, he is considered to be the leader (Buyer Stackelberg) and in the second place the supplier is considered as the leader (supplier Stackelberg). The numerical analysis of the comparison between the existing models and the sensitivity analysis of the model shows the effect of the change of parameters on the cost and income.