Game theory to control logistic costs in a two-echelon supply chain

As a mathematical tool of the decision maker, game theory is an essential methodology to analyze and solve situations where the decision of each rational agent, called player, affects the other agent´s payoff. Indeed, in this work game theory is used to analyze an inventory and transportation optimization problem within a supply chain composed of two agents: a retailer who faces a random demand of a final product and his supplier of raw materials that is also responsible of the transportation function. Since the retailer is closer to the market and has a better view of demand forecasts careful attention given to Information sharing and its impacts.