A comment on Gerchak and Gupta's 'On apportioning costs to customers in centralized continuous review inventory systems.'

Using game theory and the Shapely Value, the basis for allocation of costs to customers for inventory control systems, as explored by Gerchak and Gupta, is extended. The benefits from consolidating inventories are not always distributed under the previous approach. The alternative presented seeks to identify a region of 'fair' cost allocations so that none of the participants is in a worse position after joint inventory consolidation.