Cost Reduction of Inventory-Production-System in Multi-echelon Supply Chain Using Game Theory and Fuzzy Demand Forecasting

Industry commitments include inventory planning and control, aiming to find the most appropriate purchasing and managing inventory policies by examining the conditions and costs. The Economic Order Quantity (EOQ) is a mathematical model for inventory control in manufacturing systems. As a result, they should be developed from several perspectives to effectively utilize classic models' findings. The current study employs an EOQ model that involves creating new demand and on-time and regulated production variables while considering market demand in two-sided markets. The cost of the inventory-production system in the multi-echelon Supply Chain (SC) was reduced Using game theory and fuzzy demand forecasting. The findings revealed that the level of inventory maturity control has a strong relationship with accurate forecasting of fuzzy demand. As a result, precise forecasting of the ambiguous demands related to increasing price elasticity inevitably lowers retailer performance in SC. As price elasticity rises in response to market demand, all retailers should take the required steps to avoid losing sales. This problem boosts retailers' net profits as well as the overall management system's profitability while also lowering inventory control costs.