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Economic Lot-Sizing Games

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Author Info
Heuvel, W. van den
Borm, P.
Hamers, H. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

In this paper we introduce a new class of OR games: economic lot-sizing (ELS) games. There are a number of retailers that have a known demand for a fixed number of periods. To satisfy demand the retailers order products at the same manufacturer. By placing joint orders instead of individual orders, costs can be reduced and a cooperative game arises. In this paper we show that ELS games are balanced. Furthermore, we show that two special classes of ELS games are concave.

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Publisher Info
Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2004-088-LIS Revision_Date: 2009-07-29.

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Date of creation: 17 Nov 2004
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Handle: RePEc:dgr:eureri:30001947

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Related research
Keywords: gamet heory; lot-sizing; inventory; production;

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  1. 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. [Downloadable!] (restricted)
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  2. 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. [Downloadable!] (restricted)
  3. Ichiishi, Tatsuro, 1981. "Super-modularity: Applications to convex games and to the greedy algorithm for LP," Journal of Economic Theory, Elsevier, vol. 25(2), pages 283-286, October. [Downloadable!] (restricted)
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This page was last updated on 2009-12-2.


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