Economic lot-sizing games
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.
|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|
|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