Differential games is a class in game theory. In inventory management our motive is to stock management. I'd like to know if we can use differential game analysis to deal with Inventory problems.
No, in my humble opinion.
Differential games are related with time and then, addressed with differential equations.
Inventory management deals with economic quantities that depend on demand, unit cost of the product, cost of placing and holding cost, according to the simple and well-known formula of Economic Order Quantity (EOQ) from Operation Research.
The reordering point is normally considered fixed while the demand is at random
I think Game theory can be used to optimize inventory level. Below articles might help to know furthermore 1)https://www.sciencedirect.com/science/article/abs/pii/0377221786900111
2)
Dear Kumar,
In my humble opinion, they are different. Inventory management plays a critical role in balancing supply availability with customer requirements.
The inventory policies are selected based on problem behaviors and policymakers. There are many types of inventory policy of "continuous review" or "periodic review", such as (Q, R), (R, S),(s, S), and (S, T).
You can refer the attached papers where the inventory was solved using the heuristic approaches instead of the exact method (i.e., simulation, response surface methodology, DOE).
Article A Computational Model for Determining Levels of Factors in I...
Article Solving Order Planning Problem Using a Heuristic Approach: T...
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