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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Keywords C71, M, M11, R4, game theory, inventory, lot-sizing, production
Persistent URL,
Series ERIM Top-Core Articles , Econometric Institute Reprint Series
Journal European Journal of Operational Research
van den Heuvel, W, Blom, P, & Hamers, H.J.M. (2007). Economic lot-sizing games. European Journal of Operational Research, 176(2), 1117–1130. doi:10.1016/j.ejor.2005.09.011