Distribution center consolidation games

Distribution center consolidation games

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Article ID: iaor20051662
Country: Netherlands
Volume: 33
Issue: 3
Start Page Number: 285
End Page Number: 288
Publication Date: May 2005
Journal: Operations Research Letters
Authors: ,
Keywords: inventory, organization
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 the 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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