A co-operative game theoretical strategy of Vendor and Buyer in an EPQ model of deteriorating items under trade credit policy

In the current decade, studying economic production quantity model using Game theoretical approach is more adequate to many researchers. Here we have considered three level supply chains such as Vendor, Buyer and Customer where a game is considered between Vendor and Buyer to find the optimal strategy. The main objective of both the players is to minimize their costs. During game, both of them are agree to find the optimal strategy by using co-operative manner. So, in this research article we have considered co-operative game between Vendor and Buyer. Concept of Delay in payment is used in this study to make the current model more realistic. In co-operative game, both of the players are agree to adopt optimality condition in each respect. Non-linear optimization technique -GRG (LINGO-19.0) is used to solve the mathematical model and some mathematical data are taken to validate the model. Sensitivity analysis of parameters on the solutions is conducted and presented in both tabular and graphical form.