Industrial Engineering Journal ›› 2011, Vol. 14 ›› Issue (4): 23-27.

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Cost Allocation of JointManaged Inventory Based on Cooperative Game and Data Envelopment Analysis

  

  1. School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China
  • Online:2011-08-31 Published:2011-09-08

Abstract:  It is well-known that integrated supply (I/S) by thirdparty logistics is an effective way to reduce supplychain cost. For I/S, the key issue is how to allocate the joint inventory cost among the suppliers. In this paper, a study on this issue is conducted by using cooperative game theory and data envelopment analysis. Based on the analysis in considering the inputoutput contribution of each participator, a costallocation method is proposed such that the allocation is rational. An example is used to validate the results.

Key words:  integrated supply, joint-managed inventory, data envelopment analysis, cooperative game