Facultade de Fisioterapia

Cooperation on capacitated inventory situations with fixed holding costs

Fiestras Janeiro, María Gloria; García-Jurado, Ignacio; Meca, Ana; Mosquera Rodríguez, Manuel Alfredo
Abstract:
In this paper we analyze a situation in which several firms deal with inventory problems concerning the same type of product. We consider that each firm uses its limited capacity warehouse for storing purposes and that it faces an economic order quantity model where storage costs are irrelevant (and assumed to be zero) and shortages are allowed. In this setting, we show that firms can save costs by placing joint orders and obtain an optimal order policy for the firms. Besides, we identify an associated class of costs games which we show to be concave. Finally, we introduce and study a rule to share the costs among the firms which provides core allocations and can be easily computed
Year:
2015
Type of Publication:
Article
Keywords:
Inventory systems; Cooperation; core allocations
Journal:
European Journal of Operational Research
Volume:
241
Number:
3
Pages:
719-726
Month:
March
DOI:
https://doi.org/10.1016/j.ejor.2014.09.016
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