Non-cooperative strategies for production and shipments lot sizing in the vendor-buyer system

In the competitive situation, the objective is to determine schedules which minimize the individual average total cost of production, shipment and stockholding. We assume that the division of shipment costs is centrally coordinated or negotiated initially. It leads to a class of non-cooperative constrained games, indexed by two parameters connected with partitions of shipment costs. Non-cooperative strategies are considered as feasible strategies in a restricted non-cooperative game. Some properties of equilibrium strategies are investigated as acceptable equilibrium strategies of subgames in the game.