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Cooperation and competition in inventory games

Author

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  • Ana Meca
  • Ignacio García-Jurado
  • Peter Borm

Abstract

Inventory cost games are introduced in Meca et al. (1999). These games arise when considering the possibility of joint ordering in n-person EOQ inventory situations. Moreover, the SOC-rule is introduced and analysed as a cost allocation rule for this type of situations. In the current paper it is seen that n-person EPQ situations with shortages lead to exactly the same class of cost games. Furthermore, an alternative characterization of the SOC-rule is offered, primarily based on a transfer property which constitutes a special form of additivity. Necessary input variables for the SOC-rule are the (optimal) individual average number of orders per time unit in case there is no cooperation. Assuming that these average numbers are observable but not verifiable, we allow the players to select them strategically, while knowing that the SOC-rule will be (consecutively) applied as the cost allocation principle. Necessary and sufficient conditions are provided for the existence (and uniqueness) of a so-called constructive equilibrium in which all players make joint orders. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Ana Meca & Ignacio García-Jurado & Peter Borm, 2003. "Cooperation and competition in inventory games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 57(3), pages 481-493, August.
  • Handle: RePEc:spr:mathme:v:57:y:2003:i:3:p:481-493
    DOI: 10.1007/s001860200253
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    Citations

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    Cited by:

    1. Simai He & Jay Sethuraman & Xuan Wang & Jiawei Zhang, 2017. "A NonCooperative Approach to Cost Allocation in Joint Replenishment," Operations Research, INFORMS, vol. 65(6), pages 1562-1573, December.
    2. Ana Meca, 2007. "A core-allocation family for generalized holding cost games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 65(3), pages 499-517, June.
    3. Ana Meca & Luis Guardiola & Andrés Toledo, 2007. "p-additive games: a class of totally balanced games arising from inventory situations with temporary discounts," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 15(2), pages 322-340, December.
    4. Padilla Tinoco, Silvia Valeria & Creemers, Stefan & Boute, Robert N., 2017. "Collaborative shipping under different cost-sharing agreements," European Journal of Operational Research, Elsevier, vol. 263(3), pages 827-837.
    5. Perea, F. & Puerto, J. & Fernández, F.R., 2009. "Modeling cooperation on a class of distribution problems," European Journal of Operational Research, Elsevier, vol. 198(3), pages 726-733, November.
    6. M. Mosquera & I. García-Jurado & M. Fiestras-Janeiro, 2008. "A note on coalitional manipulation and centralized inventory management," Annals of Operations Research, Springer, vol. 158(1), pages 183-188, February.
    7. Fiestras-Janeiro, M.G. & García-Jurado, I. & Meca, A. & Mosquera, M.A., 2015. "Cooperation on capacitated inventory situations with fixed holding costs," European Journal of Operational Research, Elsevier, vol. 241(3), pages 719-726.
    8. Béal, Sylvain & Ferrières, Sylvain & Rémila, Eric & Solal, Philippe, 2018. "The proportional Shapley value and applications," Games and Economic Behavior, Elsevier, vol. 108(C), pages 93-112.
    9. Körpeoğlu, Evren & Şen, Alper & Güler, Kemal, 2013. "Non-cooperative joint replenishment under asymmetric information," European Journal of Operational Research, Elsevier, vol. 227(3), pages 434-443.
    10. Fiestras-Janeiro, M.G. & García-Jurado, I. & Meca, A. & Mosquera, M.A., 2011. "Cooperative game theory and inventory management," European Journal of Operational Research, Elsevier, vol. 210(3), pages 459-466, May.
    11. Drechsel, J. & Kimms, A., 2010. "Computing core allocations in cooperative games with an application to cooperative procurement," International Journal of Production Economics, Elsevier, vol. 128(1), pages 310-321, November.
    12. Evren Körpeoğlu & Alper Şen & Kemal Güler, 2012. "A private contributions game for joint replenishment," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 75(1), pages 67-82, February.
    13. M. Fiestras-Janeiro & I. García-Jurado & A. Meca & M. Mosquera, 2012. "Cost allocation in inventory transportation systems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 20(2), pages 397-410, July.
    14. D. Bauso & J. Timmer, 2009. "Robust dynamic cooperative games," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(1), pages 23-36, March.
    15. J. Drechsel & A. Kimms, 2010. "The subcoalition-perfect core of cooperative games," Annals of Operations Research, Springer, vol. 181(1), pages 591-601, December.
    16. M Dror & B C Hartman, 2011. "Survey of cooperative inventory games and extensions," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(4), pages 565-580, April.
    17. Nguyen, Tri-Dung, 2024. "Game of banks - biform game theoretical framework for ATM network cost sharing," European Journal of Operational Research, Elsevier, vol. 316(3), pages 1158-1178.
    18. Bernstein, Fernando & Gürhan Kök, A. & Meca, Ana, 2015. "Cooperation in assembly systems: The role of knowledge sharing networks," European Journal of Operational Research, Elsevier, vol. 240(1), pages 160-171.
    19. Guardiola, Luis A. & Meca, Ana & Puerto, Justo, 2009. "Production-inventory games: A new class of totally balanced combinatorial optimization games," Games and Economic Behavior, Elsevier, vol. 65(1), pages 205-219, January.
    20. Behzad Hezarkhani & Greys Sošić, 2019. "Who’s Afraid of Strategic Behavior? Mechanisms for Group Purchasing," Production and Operations Management, Production and Operations Management Society, vol. 28(4), pages 933-954, April.
    21. Li, Jun & Feng, Hairong & Zeng, Yinlian, 2014. "Inventory games with permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 234(3), pages 694-700.
    22. Guardiola, Luis A. & Meca, Ana & Puerto, Justo, 2008. "Production-inventory games and PMAS-games: Characterizations of the Owen point," Mathematical Social Sciences, Elsevier, vol. 56(1), pages 96-108, July.
    23. Feng, Hairong & Zeng, Yinlian & Cai, Xiaoqiang & Qian, Qian & Zhou, Yongwu, 2021. "Altruistic profit allocation rules for joint replenishment with carbon cap-and-trade policy," European Journal of Operational Research, Elsevier, vol. 290(3), pages 956-967.
    24. Güler, Kemal & Körpeoğlu, Evren & Şen, Alper, 2017. "Design and analysis of mechanisms for decentralized joint replenishment," European Journal of Operational Research, Elsevier, vol. 259(3), pages 992-1002.
    25. Hezarkhani, Behzad & Slikker, Marco & Van Woensel, Tom, 2018. "Collaborative replenishment in the presence of intermediaries," European Journal of Operational Research, Elsevier, vol. 266(1), pages 135-146.

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