A primal–dual algorithm for computing a cost allocation in the core of economic lot‐sizing games

We consider the economic lot‐sizing game with general concave ordering cost functions. It is well‐known that the core of this game is nonempty when the inventory holding costs are linear. The main contribution of this work is a combinatorial, primal–dual algorithm that computes a cost allocation in the core of these games in polynomial time. We also show that this algorithm can be used to compute a cost allocation in the core of economic lot‐sizing games with remanufacturing under certain assumptions.