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Applying a one-shot and infinite repeated inspection game to materials management

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Abstract

An inspection game models a conflict situation between an inspector and an inspectee. The mathematical analysis aims to determine optimal behaviour of the inspectee. In this paper, the controller’s (inspector) job is to audit a planner’s (inspectee) decision with regard to its optimality and to submit a report to the company’s top managers. Based on Fandel and Trockel (Int J Prod Econ 133:256–261, 2011) this inspection game is discussed here as an infinite two-person game under the aspect of costs minimization. The results show that a higher costs deviation because of a competitive behaviour of the strategic players will decrease their payoffs, so that the optimal cooperative behaviour will finally lead to a better solution for the company with respect to cost minimization as normally expected.

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Correspondence to Günter Fandel.

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Fandel, G., Trockel, J. Applying a one-shot and infinite repeated inspection game to materials management. Cent Eur J Oper Res 21, 495–506 (2013). https://doi.org/10.1007/s10100-012-0244-9

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