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: | Klijn Flip, Slikker Marco |
Keywords: | inventory, organization |
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.