FN ISI Export Format
VR 1.0
PT J
TI Competition under time‐varying demands and dynamic lot sizing costs
AF Federgruen, Awi
Meissner, Joern
AU Federgruen, A
Meissner, J
SO Naval Research Logistics
SN 1520-6750
VL 56
BP 57
EP 73
PY 2009
AB We develop a competitive pricing model which combines the complexity of time-varying demand and cost functions and that of scale economies arising from dynamic lot sizing costs. Each firm can replenish inventory in each of the T periods into which the planning horizon is partitioned. Fixed as well as variable procurement costs are incurred for each procurement order, along with inventory carrying costs. Each firm adopts, at the beginning of the planning horizon, a (single) price to be employed throughout the horizon. On the basis of each period's system of demand equations, these prices determine a time series of demands for each firm, which needs to service them with an optimal corresponding dynamic lot sizing plan. We establish the existence of a price equilibrium and associated optimal dynamic lotsizing plans, under mild conditions. We also design efficient procedures to compute the equilibrium prices and dynamic lotsizing plans.
DI 10.1002/nav.20321
ER