TY - JOUR
SN - 1520-6750
AU - Federgruen, Awi
AU - Meissner, Joern
T1 - Competition under time‐varying demands and dynamic lot sizing costs
T2 - Naval Research Logistics
SP - 57
EP - 73
IS - 1
VL - 56
PY - 2009
L1 - http://dx.doi.org/10.1002/nav.20321
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.
TS - EndNote Tagged Import Format
DO - 10.1002/nav.20321
ER -