Distribution center consolidation games |
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| Authors: | Flip Klijn Marco Slikker |
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| Affiliation: | a Institut d’Anàlisi Econòmica (CSIC) Campus UAB, 08193 Bellaterra (Barcelona), Spain
b Department of Technology Management, Technische Universiteit Eindhoven, P.O. Box 513, 5600 MB Eindhoven, The Netherlands |
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| Abstract: | We study a location-inventory model to analyze the impact of consolidation of distribution centers on facility and inventory costs. We introduce a cooperative game and show that when demand processes are i.i.d. the core is non-empty, i.e., consolidation allows for a stable division of the minimal costs. |
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| Keywords: | Inventory management Cooperative games |
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