Applying Game Theory in Invenory Control Problems

The inventory control is a critical problem of the management of supplier companies for several decades. In recent years numerous new supply chain and inventory control models have been developed to support management decisions. In this paper, we investigate inventory holding and producing problems of supply chains with the method of game theory. We set up a two-person, non-cooperative finite game theory model for solving the classical one-customer and one-supplier problem. Our basic aim is to determine that strategy, which defends supplier from states of being a loser issuing from market uncertainty. We show, that the equilibrium of mixed strategy deviates from the analytic optimal solution