The effect of consolidated periods in heterogeneous lot-sizing games

Abstract We consider a cooperative game defined by an economic lot-sizing problem with heterogeneous costs over finite time horizon, in which each firm faces demand for single product period and coalitions can pool orders. The model of cooperation works as follows: ordering channels holding backlogging technologies are shared among the members coalitions. This implies that uses best channel technology provided participants consortium. That is, they produce, hold inventory, pay backlogged make orders at minimum cost coalition members. Thus, firms aim satisfying their planing horizon minimal operation cost. Our contribution is to show there exist fair allocations overall so no group agents profit from leaving Then we propose parametric family provide sufficient conditions this be stable against coalitional defections firms. Finally, focus on those periods consolidated analyze effect stability allocations.