CentER Discussion Paper Series No. 9953
Posted: 10 Mar 2000
Inventory management studies how a single firm can minimize the average cost per time unit of its inventory. In this paper we extend this analysis to situations where a collective of firms minimizes its joint inventory cost by means of cooperation. Depending on the information revealed by the individual firms, we analyze related cooperative TU games and focus on proportional division mechanisms to share the joint cost.
JEL Classification: C71
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