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Cooperation and game-theoretic cost allocation in stochastic inventory models with continuous review |
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| Authors: | Judith Timmer Michela Chessa Richard J. Boucherie |
| Affiliation: | 1. University of Twente, Faculty of Electrical Engineering, Mathematics, and Computer Science, Department of Applied Mathematics, Stochastic Operations Research, P.O. Box 217, 7500 AE Enschede, The Netherlands;2. University of Milan, Faculty of Sciences, Department of Mathematics, Via Saldini 50, Milan, Italy |
| Abstract: | We study cooperation strategies for companies that continuously review their inventories and face Poisson demand. Our main goal is to analyze stable cost allocations of the joint costs. These are such that any group of companies has lower costs than the individual companies. If such allocations exist they provide an incentive for the companies to cooperate. |
| Keywords: | Joint replenishment Stochastic demand Cost allocation Continuous review Game theory Inventory model |
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