Game theoretic analysis of sequencing situations has been restricted to manufactur- ing systems which consist of machines that can process only one job at a time. However, in many manufacturing systems, operations are carried out by batch machines which can simultaneously process multiple jobs. This paper aims to extend the game theoretical approach to the cost allocation problems arising from sequencing situations on systems that consist of batch machines. We first consider sequencing situations with a single batch machine and analyze cooperative games arising from these situations. It is shown that these games are convex and an expression for the Shapley value of these games is provided. We also introduce an equal gain splitting rule for these sequencing situa- tions and provide an axiomatic characterization. Second, we analyze various aspects of flow-shop sequencing situations which consist of batch machines only. In particular, we provide two cases in which the cooperative game arising from the flow-shop sequencing situation is equal to the game arising from a sequencing situation that corresponds to one specific machine in the flow-shop.
