Distribution Center Consolidation Games
AbstractWe study the location-inventory model as introduced by Teo et al. (2001) to analyzethe impact of consolidation of distribution centers on facility and inventory costs. We associate a cooperative game with each location-inventory situation and prove that this game has a non-empty core for identical and independent demand processes. Hence, consolidation does not only lower joint costs (Teo et al. (2001)), but it allows for a stable division of the minimal costs as well.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 118.
Date of creation: Apr 2004
Date of revision:
Inventory management; cooperative games;
Other versions of this item:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Borm, P.E.M. & Hamers, H.J.M. & Hendrickx, R.L.P., 2001.
"Operations Research Games: A Survey,"
2001-45, Tilburg University, Center for Economic Research.
- Peter Borm & Herbert Hamers & Ruud Hendrickx, 2001. "Operations research games: A survey," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 9(2), pages 139-199, December.
- Meca, A. & Timmer, J.B. & Garcia-Jurado, I. & Borm, P.E.M., 2004.
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-129329, Tilburg University.
- Muller, Alfred & Scarsini, Marco & Shaked, Moshe, 2002. "The Newsvendor Game Has a Nonempty Core," Games and Economic Behavior, Elsevier, vol. 38(1), pages 118-126, January.
- Hartman, Bruce C. & Dror, Moshe & Shaked, Moshe, 2000. "Cores of Inventory Centralization Games," Games and Economic Behavior, Elsevier, vol. 31(1), pages 26-49, April.
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