IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v241y2015i3p719-726.html
   My bibliography  Save this article

Cooperation on capacitated inventory situations with fixed holding costs

Author

Listed:
  • Fiestras-Janeiro, M.G.
  • García-Jurado, I.
  • Meca, A.
  • Mosquera, M.A.

Abstract

In this paper we analyze a situation in which several firms deal with inventory problems concerning the same type of product. We consider that each firm uses its limited capacity warehouse for storing purposes and that it faces an economic order quantity model where storage costs are irrelevant (and assumed to be zero) and shortages are allowed. In this setting, we show that firms can save costs by placing joint orders and obtain an optimal order policy for the firms. Besides, we identify an associated class of costs games which we show to be concave. Finally, we introduce and study a rule to share the costs among the firms which provides core allocations and can be easily computed.

Suggested Citation

  • Fiestras-Janeiro, M.G. & García-Jurado, I. & Meca, A. & Mosquera, M.A., 2015. "Cooperation on capacitated inventory situations with fixed holding costs," European Journal of Operational Research, Elsevier, vol. 241(3), pages 719-726.
    • Handle: RePEc:eee:ejores:v:241:y:2015:i:3:p:719-726
    DOI: 10.1016/j.ejor.2014.09.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714007371
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2014.09.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. M. Fiestras-Janeiro & Ignacio García-Jurado & Manuel Mosquera, 2011. "Rejoinder on: Cooperative games and cost allocation problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 33-34, July.
    2. Nagarajan, Mahesh & Sosic, Greys, 2008. "Game-theoretic analysis of cooperation among supply chain agents: Review and extensions," European Journal of Operational Research, Elsevier, vol. 187(3), pages 719-745, June.
    3. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
    4. Evren Körpeoğlu & Alper Şen & Kemal Güler, 2012. "A private contributions game for joint replenishment," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 75(1), pages 67-82, February.
    5. Ana Meca & Ignacio García-Jurado & Peter Borm, 2003. "Cooperation and competition in inventory games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 57(3), pages 481-493, August.
    6. M. Fiestras-Janeiro & Ignacio García-Jurado & Manuel Mosquera, 2011. "Cooperative games and cost allocation problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 1-22, July.
    7. Sprumont, Yves, 1990. "Population monotonic allocation schemes for cooperative games with transferable utility," Games and Economic Behavior, Elsevier, vol. 2(4), pages 378-394, December.
    8. Meca, Ana & Timmer, Judith & Garcia-Jurado, Ignacio & Borm, Peter, 2004. "Inventory games," European Journal of Operational Research, Elsevier, vol. 156(1), pages 127-139, July.
      • Meca-Martinez, A. & Timmer, J.B. & Garcia-Jurado, I. & Borm, P.E.M., 1999. "Inventory Games," Discussion Paper 1999-53, Tilburg University, Center for Economic Research.
      • Meca-Martinez, A. & Timmer, J.B. & Garcia-Jurado, I. & Borm, P.E.M., 1999. "Inventory Games," Other publications TiSEM 21f26b3f-7fae-4f19-908f-a, Tilburg University, School of Economics and Management.
      • Meca, A. & Timmer, J.B. & Garcia-Jurado, I. & Borm, P.E.M., 2004. "Inventory games," Other publications TiSEM 49368f2d-02fc-49c9-9d74-8, Tilburg University, School of Economics and Management.
    9. Rodney P. Parker & Roman Kapuściński, 2011. "Managing a Noncooperative Supply Chain with Limited Capacity," Operations Research, INFORMS, vol. 59(4), pages 866-881, August.
    10. M Dror & B C Hartman, 2011. "Survey of cooperative inventory games and extensions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 565-580, April.
    11. Karimi, B. & Fatemi Ghomi, S. M. T. & Wilson, J. M., 2003. "The capacitated lot sizing problem: a review of models and algorithms," Omega, Elsevier, vol. 31(5), pages 365-378, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M. G. Fiestras-Janeiro & I. García-Jurado & A. Meca & M. A. Mosquera, 2020. "On benefits of cooperation under strategic power," Annals of Operations Research, Springer, vol. 288(1), pages 285-306, May.
    2. Mercedes Landete & Gilbert Laporte, 2019. "Facility location problems with user cooperation," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 27(1), pages 125-145, April.
    3. Corberán, Ángel & Landete, Mercedes & Peiró, Juanjo & Saldanha-da-Gama, Francisco, 2020. "The facility location problem with capacity transfers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    4. Chakravarthy, Srinivas R., 2016. "Queueing models with optional cooperative services," European Journal of Operational Research, Elsevier, vol. 248(3), pages 997-1008.
    5. Günter Fandel & Jan Trockel, 2016. "Investment and lot size planning in a supply chain: coordinating a just-in-time-delivery with a Harris- or a Wagner/Whitin-solution," Journal of Business Economics, Springer, vol. 86(1), pages 173-195, January.
    6. Feng, Xuehao & Moon, Ilkyeong & Ryu, Kwangyeol, 2017. "Warehouse capacity sharing via transshipment for an integrated two-echelon supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 104(C), pages 17-35.
    7. A. Saavedra-Nieves & I. García-Jurado & M. G. Fiestras-Janeiro, 2018. "On coalition formation in a non-convex multi-agent inventory problem," Annals of Operations Research, Springer, vol. 261(1), pages 255-273, February.
    8. Güler, Kemal & Körpeoğlu, Evren & Şen, Alper, 2017. "Design and analysis of mechanisms for decentralized joint replenishment," European Journal of Operational Research, Elsevier, vol. 259(3), pages 992-1002.
    9. Luo, Chunlin & Zhou, Xiaoyang & Lev, Benjamin, 2022. "Core, shapley value, nucleolus and nash bargaining solution: A Survey of recent developments and applications in operations management," Omega, Elsevier, vol. 110(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evren Körpeoğlu & Alper Şen & Kemal Güler, 2012. "A private contributions game for joint replenishment," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 75(1), pages 67-82, February.
    2. Bernstein, Fernando & Gürhan Kök, A. & Meca, Ana, 2015. "Cooperation in assembly systems: The role of knowledge sharing networks," European Journal of Operational Research, Elsevier, vol. 240(1), pages 160-171.
    3. Li, Jun & Feng, Hairong & Zeng, Yinlian, 2014. "Inventory games with permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 234(3), pages 694-700.
    4. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2018. "Collaborative replenishment in the presence of intermediaries," European Journal of Operational Research, Elsevier, vol. 266(1), pages 135-146.
    5. Antonio Magaña & Francesc Carreras, 2018. "Coalition Formation and Stability," Group Decision and Negotiation, Springer, vol. 27(3), pages 467-502, June.
    6. Padilla Tinoco, Silvia Valeria & Creemers, Stefan & Boute, Robert N., 2017. "Collaborative shipping under different cost-sharing agreements," European Journal of Operational Research, Elsevier, vol. 263(3), pages 827-837.
    7. Körpeoğlu, Evren & Şen, Alper & Güler, Kemal, 2013. "Non-cooperative joint replenishment under asymmetric information," European Journal of Operational Research, Elsevier, vol. 227(3), pages 434-443.
    8. Guardiola, Luis A. & Meca, Ana & Puerto, Justo, 2008. "Production-inventory games and PMAS-games: Characterizations of the Owen point," Mathematical Social Sciences, Elsevier, vol. 56(1), pages 96-108, July.
    9. Fiestras-Janeiro, M.G. & García-Jurado, I. & Meca, A. & Mosquera, M.A., 2011. "Cooperative game theory and inventory management," European Journal of Operational Research, Elsevier, vol. 210(3), pages 459-466, May.
    10. Güler, Kemal & Körpeoğlu, Evren & Şen, Alper, 2017. "Design and analysis of mechanisms for decentralized joint replenishment," European Journal of Operational Research, Elsevier, vol. 259(3), pages 992-1002.
    11. Ana Meca, 2007. "A core-allocation family for generalized holding cost games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 65(3), pages 499-517, June.
    12. Guardiola, Luis A. & Meca, Ana & Puerto, Justo, 2009. "Production-inventory games: A new class of totally balanced combinatorial optimization games," Games and Economic Behavior, Elsevier, vol. 65(1), pages 205-219, January.
    13. Lozano, Miguel A. & Serra, Luis M. & Pina, Eduardo A., 2022. "Optimal design of trigeneration systems for buildings considering cooperative game theory for allocating production cost to energy services," Energy, Elsevier, vol. 261(PB).
    14. Luis A. Guardiola & Ana Meca & Justo Puerto, 2022. "The effect of consolidated periods in heterogeneous lot-sizing games," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(2), pages 380-404, July.
    15. M. Fiestras-Janeiro & I. García-Jurado & A. Meca & M. Mosquera, 2012. "Cost allocation in inventory transportation systems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 20(2), pages 397-410, July.
    16. LAMAS, ALEJANDRO & CHEVALIER, Philippe, 2013. "Jumping the hurdles for collaboration: fairness in operations pooling in the absence of transfer payments," LIDAM Discussion Papers CORE 2013073, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    17. Frank Karsten & Marco Slikker & Peter Borm, 2017. "Cost allocation rules for elastic single‐attribute situations," Naval Research Logistics (NRL), John Wiley & Sons, vol. 64(4), pages 271-286, June.
    18. Léa Munich, 2023. "Schedule Situations and their Cooperative Game Theoretic Representations," Working Papers 2023-08, CRESE.
    19. D. Bauso & J. Timmer, 2009. "Robust dynamic cooperative games," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(1), pages 23-36, March.
    20. Algaba, Encarnación & Béal, Sylvain & Fragnelli, Vito & Llorca, Natividad & Sánchez-Soriano, Joaquin, 2019. "Relationship between labeled network games and other cooperative games arising from attributes situations," Economics Letters, Elsevier, vol. 185(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:241:y:2015:i:3:p:719-726. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.