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Title

Distribution Center Consolidation Games

AuthorsKlijn, Flip CSIC ORCID ; Slikker, Marco
KeywordsInventory management
Cooperative games
Issue Date6-Feb-2004
SeriesUFAE and IAE Working Papers
602.04
AbstractWe study the location-inventory model as introduced by Teo et al. (2001) to analyze the impact of consolidation of distribution centers on facility and inventory costs. We extend their result on profitability of consolidation. We associate a cooperative game with each location-inventory situation and prove that this game has a non-empty core for identical and independent demand processes. This illustrates that consolidation does not only lower joint costs (which was shown by Teo et al. (2001)), but it allows for a stable division of the minimal costs as well.
DescriptionTrabajo publicado como artículo en Operations Research Letters 33(3): 285-288 (2005).-- http://dx.doi.org/10.1016/j.orl.2004.06.005
URIhttp://hdl.handle.net/10261/1807
Appears in Collections:(IAE) Informes y documentos de trabajo




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