A Stackelberg Game Model between Manufacturer and Wholesaler in a Food Supply Chain

This paper describes an application of the Stackerlberg game model for the food supply chain. Specifically, the focus of this work is on the pork industry and considers a production game. Such game includes two players, manufacturer and wholesaler, who both aim to maximize profit. The role of leader is played by the manufacturer, and follower by the wholesaler. Decisions involved in the game are the level of production, quantity to be sold by the leader, and level of purchased products by the follower at each time period. This paper presents a case study, and results show that coordination between these players is seen in cost savings and improved service level.