Production-Inventory games: a new class of totally balanced combinatorial optimization games
arXiv:2402.04328 · doi:10.1016/j.geb.2007.02.003
Abstract
In this paper we introduce a new class of cooperative games that arise from production-inventory problems. Several agents have to cover their demand over a finite time horizon and shortages are allowed. Each agent has its own unit production, inventory-holding and backlogging cost. Cooperation among agents is given by sharing production processes and warehouse facilities: agents in a coalition produce with \ the cheapest production cost and store with the cheapest inventory cost. We prove that the resulting cooperative game is totally balanced and the Owen set reduces to a singleton: the Owen point. Based on this type of allocation we find a population monotonic allocation scheme for this class of games. Finally, we point out the relationship of the Owen point with other well-known allocation rules such as the nucleolus and the Shapley value.
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Cited by in corpus (5)
- Production-Inventory games: a new class of totally balanced combinatorial optimization games
- Cooperation and profit allocation in distribution chains
- Production-inventory games and pmas games: characterizations of the Owen point
- Unitary Owen points in cooperative lot-sizing models with backlogging
- Quid Pro Quo allocations in Production-Inventory games