Abstract
| Original language | English |
|---|---|
| Pages (from-to) | 35-42 |
| Journal | International Journal of Production Economics |
| Volume | 133 |
| Issue number | 1 |
| DOIs | |
| Publication status | Published - 2011 |
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On the convexity of newsvendor games. / Ozen, U.; Norde, H.W.; Slikker, M.
In: International Journal of Production Economics, Vol. 133, No. 1, 2011, p. 35-42.Research output: Contribution to journal › Article › Scientific › peer-review
TY - JOUR
T1 - On the convexity of newsvendor games
AU - Ozen, U.
AU - Norde, H.W.
AU - Slikker, M.
N1 - Appeared earlier as CentER Discussion Paper 2005-103
PY - 2011
Y1 - 2011
N2 - This study considers a simple newsvendor situation that consists of n retailers, all selling the same item with common purchasing costs and common selling prices. Groups of retailers might increase their expected joint profit by inventory centralization, which means that they make a joint order to satisfy total future demand. The resulting newsvendor games are shown to have non-empty cores in the literature. This study investigates convexity of newsvendor games. We focus our analysis on the class of newsvendor games with independent symmetric unimodal demand distributions after providing several examples outside this class that are not convex. Several interesting subclasses, containing convex games only, are identified. Additionally, we illustrate that these results cannot be extended to all games in this class.
AB - This study considers a simple newsvendor situation that consists of n retailers, all selling the same item with common purchasing costs and common selling prices. Groups of retailers might increase their expected joint profit by inventory centralization, which means that they make a joint order to satisfy total future demand. The resulting newsvendor games are shown to have non-empty cores in the literature. This study investigates convexity of newsvendor games. We focus our analysis on the class of newsvendor games with independent symmetric unimodal demand distributions after providing several examples outside this class that are not convex. Several interesting subclasses, containing convex games only, are identified. Additionally, we illustrate that these results cannot be extended to all games in this class.
U2 - 10.1016/j.ijpe.2010.01.022
DO - 10.1016/j.ijpe.2010.01.022
M3 - Article
VL - 133
SP - 35
EP - 42
JO - International Journal of Production Economics
JF - International Journal of Production Economics
SN - 0925-5273
IS - 1
ER -