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Masabumi Furuhata - Capacity Allocation with Competitive Retailers

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On September 19, 2006
Manufacture des Tabacs (salle ME 301)
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Séminaire IRIT-UT1 - Mardi 19 septembre 2006 à 12h30 - salle ME 301

This paper addresses a problem in supply chain management that how scarce resources can be effciently allocated among competing interests. We present a formal model of allocation mechanisms for such settings that a supplier with limited production capacity allocates its products to a set of competitive retailers. In contrary to the existing allocation mechanisms in which retailers are local monopolists, the new model exhibits much more complicated market behaviors. We show that the widely-used proportional allocation mechanism is no longer necessarily Pareto optimal, even if all retailers are in a symmetric situation. A necessary and suffcient condition for the proportional allocation to be Pareto optimal is given. We propose a truth-inducing allocation mechanism based on our capacity allocation model, which is more intuitive and applicable than the existing truth-inducing mechanisms.
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Date of update February 9, 2012


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