This paper examines the subject of cost allocation in a multiple product inventory system, allowing for consolidation of shipments. If we order multiple items using an economic order quantity (EOQ) policy, and consolidate shipments, part of the ordering cost is shared, and part is specific to...

Joint replenishment for several products to achieve a lower inventory logistics cost has been a topic of extensive studies. Less attention has been paid to the issue of deciding how the joint replenishment costs should be allocated across the individual products. Ideally, when items are ordered...

Chapter 1. Operations Management: A Curtain Raiser -- Chapter 2. Game Theory: Primitives and Representations -- Chapter 3. Games in Normal Form -- Chapter 4. Games in Normal Form: Applications in OM -- Chapter 5. Games in Extensive Form -- Chapter 6. Games in Extensive Form: Applications in OM...

The author considers a model of a decentralized distribution system consisting of n retailers selling an identical product. Retailers face a stochastic demand and must order their initial inventory before this demand is realized. After demand realization, retailers decide how much of their...