On the core of Production-Inventory games

A. Meca, L. A. Guardiola Alcalá, J. Puerto Albandoz

Production-inventory games were introduced in Guardiola et al. (2009) as a new class of totally balanced combinatorial optimization games. From among all core-allocation, the Owen point was proposed as a specifically appealing solution. In this talk we analyze the structure of the core for these games, checking their algorithmic complexity. Specifically, we prove that the number of extreme point of its core is exponential in the number of players. In addition, we study alternative core-allocations that recognize the contribution of the essential players in the cost savings of the grand coalition.

Keywords: Production-Inventory games, core, totally balanced, combinatorial optimization games, extreme points

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