Bargaining for cooperative economic ordering

Authors:
Stefan Minner
Affiliations:
University of Mannheim, Business School, Schloss, 68131 Mannheim, Germany
Venue:
Decision Support Systems
Year:
2007

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Abstract

This paper analyzes horizontal cooperations between organizations that have the opportunity to jointly replenish material requirements. Two mechanisms are investigated, the search for short-term cooperations (e.g., via electronic markets) and long-term cooperations. The operations management context used in this paper is the economic order quantity model. Collaboration is analyzed by using bargaining concepts from non-cooperative and cooperative game theory.