Bargaining for cooperative economic ordering
This paper analyzes horizontal cooperations between organizations that have the opportunity to jointly replenish material requirements. Two mechanisms are investigated, the search for short-term cooperations (e.g., via electronic markets) and long-term cooperations. The operations management context used in this paper is the economic order quantity model. Collaboration is analyzed by using bargaining concepts from non-cooperative and cooperative game theory.
economic order quantities game theory cooperative sourcing