Asymptotic behavior of optimal quantities in symmetric transshipment coalitions
Asymptotic behavior of optimal quantities in symmetric transshipment coalitions
This paper addresses the asymptotic behavior of optimal quantities in symmetric transshipment coalitions. First, we provide bounds for optimal quantities under general demand structure. Second, we show that if the variance of average demand diminishes as the number of newsvendor grows, the optimal quantities move toward the distribution mean after coalitions became sufficiently large. However, the limits depend on the type of newsvendors in the coalition and the magnitude of transshipment cost above a certain threshold. We also discuss the pooling anomaly in large coalitions in these settings and show that the optimal quantities always decrease (increase) to their limit if the single newsvendor’s optimal quantity is above (below) mean.
438-443
Hezarkhani, B.
ae3fc227-94dc-47bd-b52c-2fdf90277bef
Kubiak, W.
7020eb70-23e1-49f5-bc49-f743837523b4
Hartman, B.
dc676f6b-132c-4bf6-9ffe-a749c0b26e91
September 2014
Hezarkhani, B.
ae3fc227-94dc-47bd-b52c-2fdf90277bef
Kubiak, W.
7020eb70-23e1-49f5-bc49-f743837523b4
Hartman, B.
dc676f6b-132c-4bf6-9ffe-a749c0b26e91
Hezarkhani, B., Kubiak, W. and Hartman, B.
(2014)
Asymptotic behavior of optimal quantities in symmetric transshipment coalitions.
Operations Research Letters, 42 (6), .
(doi:10.1016/j.orl.2014.07.008).
Abstract
This paper addresses the asymptotic behavior of optimal quantities in symmetric transshipment coalitions. First, we provide bounds for optimal quantities under general demand structure. Second, we show that if the variance of average demand diminishes as the number of newsvendor grows, the optimal quantities move toward the distribution mean after coalitions became sufficiently large. However, the limits depend on the type of newsvendors in the coalition and the magnitude of transshipment cost above a certain threshold. We also discuss the pooling anomaly in large coalitions in these settings and show that the optimal quantities always decrease (increase) to their limit if the single newsvendor’s optimal quantity is above (below) mean.
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Accepted/In Press date: 29 July 2014
e-pub ahead of print date: 12 August 2014
Published date: September 2014
Identifiers
Local EPrints ID: 479170
URI: http://eprints.soton.ac.uk/id/eprint/479170
ISSN: 0167-6377
PURE UUID: 1ec35a3c-0f0d-431f-8225-3ac776d2e147
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Date deposited: 20 Jul 2023 16:41
Last modified: 17 Mar 2024 04:21
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Author:
B. Hezarkhani
Author:
W. Kubiak
Author:
B. Hartman
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