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.

Additional Metadata
Keywords C71, M, M11, R4, game theory, inventory, lot-sizing, production
Persistent URL dx.doi.org/10.1016/j.ejor.2005.09.011, hdl.handle.net/1765/19265
Citation
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