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A Primal-Dual Algorithm for Computing a Cost Allocation in the Core of Economic Lot-Sizing Games

Mohan Gopaladesikan (mohang***at***purdue.edu)
Nelson A. Uhan (nuhan***at***purdue.edu)
Jikai Zou (zou7***at***purdue.edu)

Abstract: We consider the economic lot-sizing game with general concave ordering cost functions. It is well-known that the core of this game is nonempty when the inventory holding costs are linear. The main contribution of this work is a combinatorial, primal-dual algorithm that computes a cost allocation in the core of these games in polynomial time. We also show that this algorithm can be used to compute a cost allocation in the core of economic lot-sizing games with remanufacturing under certain assumptions.

Keywords: cooperative games; cost allocation; economic lot-sizing; primal-dual algorithm

Category 1: Other Topics (Game Theory )

Category 2: Combinatorial Optimization

Category 3: Applications -- OR and Management Sciences (Production and Logistics )

Citation: Operations Research Letters. doi:10.1016/j.orl.2012.06.009

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Entry Submitted: 10/23/2011
Entry Accepted: 10/25/2011
Entry Last Modified: 07/17/2012

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