Distribution Center Consolidation Games

Flip Klijn and Marco Slikker

UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC)

Abstract: We study the location-inventory model as introduced by Teo et al. (2001) to analyze the impact of consolidation of distribution centers on facility and inventory costs. We extend their result on profitability of consolidation. We associate a cooperative game with each location-inventory situation and prove that this game has a non-empty core for identical and independent demand processes. This illustrates that consolidation does not only lower joint costs (which was shown by Teo et al. (2001)), but it allows for a stable division of the minimal costs as well.

Keywords: inventory management; cooperative games (search for similar items in EconPapers)
JEL-codes: C71 (search for similar items in EconPapers)
Pages: 9
Date: 2004-02-06
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://pareto.uab.es/wp/2004/60204.pdf (application/pdf)

Related works:
Working Paper: Distribution Center Consolidation Games (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aub:autbar:602.04

Access Statistics for this paper

More papers in UFAE and IAE Working Papers from Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) Contact information at EDIRC.
Bibliographic data for series maintained by Xavier Vila ().