### Abstract

Original language | Undefined |
---|---|

Place of Publication | Enschede |

Publisher | University of Twente, Department of Applied Mathematics |

ISBN (Print) | 0169-2690 |

Publication status | Published - 2005 |

### Publication series

Name | memorandum |
---|---|

Publisher | Department of Applied Mathematics, University of Twente |

No. | 1770 |

ISSN (Print) | 0169-2690 |

### Keywords

- MSC-90B99
- MSC-91A12
- EWI-3590
- Balancedness
- IR-65954
- Distribution chain
- mgpc-solution
- METIS-224400
- Cooperative game

### Cite this

*Cooperation and profit allocation in distribution chains*. (memorandum; No. 1770). Enschede: University of Twente, Department of Applied Mathematics.

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*Cooperation and profit allocation in distribution chains*. memorandum, no. 1770, University of Twente, Department of Applied Mathematics, Enschede.

**Cooperation and profit allocation in distribution chains.** / Guardiola, L.A.; Meca, A.; Timmer, Judith B.

Research output: Book/Report › Report › Professional

TY - BOOK

T1 - Cooperation and profit allocation in distribution chains

AU - Guardiola, L.A.

AU - Meca, A.

AU - Timmer, Judith B.

N1 - Imported from MEMORANDA

PY - 2005

Y1 - 2005

N2 - We study the coordination of actions and the allocation of profit in distribution chains under decentralized control. We consider distribution chains in which a single supplier supplies goods for replenishment of stocks of several retailers who, in turn, sell these goods to their own separate markets. The goal of the supplier and the retailers is to maximize their individual profits. Since the optimal joint profit under centralized control is larger than the sum of the individual optimal profits under decentralized control, cooperation among firms by means of coordination of actions may improve individual profits. The effects of cooperation are studied by means of cooperative games. For each distribution chain we define a corresponding cooperative game and study its properties. Among others we show that such games are balanced. Based on the nice core structure a stable solution concept for these games is proposed and its properties are interpreted in terms of the underlying distribution chain.

AB - We study the coordination of actions and the allocation of profit in distribution chains under decentralized control. We consider distribution chains in which a single supplier supplies goods for replenishment of stocks of several retailers who, in turn, sell these goods to their own separate markets. The goal of the supplier and the retailers is to maximize their individual profits. Since the optimal joint profit under centralized control is larger than the sum of the individual optimal profits under decentralized control, cooperation among firms by means of coordination of actions may improve individual profits. The effects of cooperation are studied by means of cooperative games. For each distribution chain we define a corresponding cooperative game and study its properties. Among others we show that such games are balanced. Based on the nice core structure a stable solution concept for these games is proposed and its properties are interpreted in terms of the underlying distribution chain.

KW - MSC-90B99

KW - MSC-91A12

KW - EWI-3590

KW - Balancedness

KW - IR-65954

KW - Distribution chain

KW - mgpc-solution

KW - METIS-224400

KW - Cooperative game

M3 - Report

SN - 0169-2690

T3 - memorandum

BT - Cooperation and profit allocation in distribution chains

PB - University of Twente, Department of Applied Mathematics

CY - Enschede

ER -