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系统工程理论与实践 2005
Pareto Optimization and Its Realization in VMI System Considering Pricing, Production Capacity and Raw Material Procurement
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Abstract:
This paper firstly talk about the general condition for Pareto optimality in the VMI system where non-cooperation game occurs considering pricing, production capacity and raw material procurement. Secondly the feasible set for Pareto optimality based on the Stackelberg equilibrium is developed. Thirdly we proposed a Nash bargaining model that can realize the Pareto optimality for the manufacturer and all retailers. Lastly a numerical example is given to illustrate the theory that the cooperation makes the enterprises' net profit increased significantly.