Modeling cooperation on a class of distribution problems

In this paper we study models of cooperation between the nodes of a network that represents a distribution problem. The distribution problem we propose arises when, over a graph, a group of nodes offers certain commodity, some other nodes require it and a third group of nodes neither need this material nor offer it but they are strategically relevant to the distribution plan. The delivery of one unit of material to a demand node generates a fixed profit, and the shipping of the material through the arcs has an associated cost. We show that in such a framework cooperation is beneficial for the different parties. We prove that the cooperative situation arising from this distribution problem is totally balanced by finding a set of stable allocations (in the core of an associated cooperative game). In order to overcome certain fairness problems of these solutions, we introduce two new solution concepts and study their properties.OR in strategic planning Game theory Supply chain management