Economic lot-sizing games

Abstract

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 jointorders 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 specialclasses of ELS games are concave.Game Theory;Lot-sizing;Inventory;Production