COOPERATIVE AND NON-COOPERATIVE STRATEGIES IN A THREE- NODE SERIAL SUPPLY CHAIN G. Skintzi, T. Karantana, G. Ioannou, G.P. Prastacos Athens University of Economics and Business Department of Management Science and Technology Management Science Laboratory Evelpidon 47 A & Lefkados 33, Athens, Greece ABSTRACT In this paper we explore the relations between the nodes of a serial supply chain and analyze cooperation and non-cooperation strategies as far as inventory control is concerned. We consider a serial, three-node, supply chain consisting of one manufacturer, one retailer and one supplier. We investigate three different non-cooperative strategies. Each strategy corresponds to the control of the inventory by one of the supply chain’ s nodes. In addition we investigate a cooperation strategy, through revenue sharing contracts, between the supply chain nodes. Keywords: Inventory Control ,Game Theory, Supply Chain INTRODUCTION In this paper we explore the relations between the nodes of a serial supply chain and analyze cooperation and non-cooperation strategies as far as inventory control is concerned. Recent empirical results indicate that in certain industries there has been a significant alteration in the perspective of and the way in which inventory, is managed. In contrast with “traditional” supply chains where the downstream node makes stock level decisions and controls inventory there has been a tendency in supply chain management to shift inventory decisions and control to the upstream node and to adopt “more” cooperative strategies. We consider a serial, three-node, supply chain consisting of one manufacturer, one retailer and one supplier. We investigate a cooperation strategy between the supply chain partners using revenue sharing contracts. In addition we investigate three different non- cooperative strategies. Each strategy corresponds to the control of the inventory by one of the supply 1