| Article ID: | iaor20084263 |
| Country: | Netherlands |
| Volume: | 176 |
| Issue: | 2 |
| Start Page Number: | 1117 |
| End Page Number: | 1130 |
| Publication Date: | Jan 2007 |
| Journal: | European Journal of Operational Research |
| Authors: | Borm Peter, Hamers Herbert, Heuvel Wilco van den |
| Keywords: | game theory |
In this paper we introduce a new class of OR games: economic lot-sizing (ELS) games. There are a number of retailers that have a known demand for a fixed number of periods. To satisfy demand the retailers order products at the same manufacturer. By placing joint orders instead of individual orders, costs can be reduced and a cooperative game arises. In this paper we show that ELS games are balanced. Furthermore, we show that two special classes of ELS games are concave.