Distribution center consolidation games

Distribution center consolidation games

We study the location-inventory model as introduced by Teo et al. (2001) to analyze the impact of consolidation of distribution centers on facility and inventory costs. We extend their result on profitability of consolidation. We associate a cooperative game with each location-inventory situation and prove that this game has a nonempty core for identical and independent demand processes. This i...

A comprehensive strategy for successful data center consolidation

Impact on inventory costs with consolidation of distribution centers

The consolidation of Distribution Centers (DCs) is a new trend in global logistics management, with a reduction in inventory costs often being cited as one of the main bene®ts. This paper uses an analytical modeling approach to study the impact on facility investment and inventory costs when several DCs are consolidated into a central DC. In particular, our model suggests that consolidation lea...

Dynamics of strategy distribution in iterated games

Evolutionary tournaments have been used as a tool for comparing game-playing strategies. For instance, in the late 1970’s, Axelrod organized tournaments to compare strategies for playing the iterated prisoner’s dilemma (PD) game. While these tournaments and later research have provided us with a better understanding of successful strategies for iterated PD, our understanding is less clear about...

The Normal Distribution and Repeated Games

For a repetated zero-sum two-person game with incomplete information discussed by Zamir, it is proved here that lira x/n v n (/7) = q~ (p) where 4~ (P) is the normal density function n--+~ 1 1 ~P e -(1/2)x2 dx = p). Here evaluated at its p-quantile (i.e. 0 (P) . . . . . e-(1/2)Xp where ,,/2~ . ~ / ~ _o~ for 0 ~< p ~< 1, (p, 1 p ) is the a priori probability distribution on two states of nature,...