Pooling of spare parts between multiple users: How to share the benefits?
We derive structural properties for the (S?1, S) inventory model with backordering. We formulate a cooperative game to study pooling between a number of companies. Pooling expensive, low-demand parts may reduce backorders, inventories, and costs. The allocation of total costs proportional to players demand rates is in the core.
spare parts inventory core cooperative game theory inventory pooling