In a transshipment game, supply chain agents cooperate to transship surplus products. This note studies the effect of size of transshipment coalitions on the optimal production/order quantities. It characterizes these quantities for transshipment games with identical newsvendors and normally distributed market demands. It also gives a closed form formula for equal allocation in their cores.
@article{arxiv.1303.5934,
title = {On Transshipment Games with Identical Newsvendors},
author = {Behzad Hezarkhani and Wieslaw Kubiak and Bruce Hartman},
journal= {arXiv preprint arXiv:1303.5934},
year = {2013}
}