A collaborative approach based on Shapley value for carriers in the supply chain distribution

Wang, Yiting

doi:10.1016/j.heliyon.2023.e17967

Cited by 3 publications

(1 citation statement)

References 51 publications

(51 reference statements)

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“…In a collaborative game theory, each player contributes to the overall profit made by the collaborators, the grand coalition. The sharing of the profit in a cooperative game (Wang, 2023) can be achieved using the Shapley value method. The Shapley value method is efficient and distributes the average profit from the outcome of the collaboration, and the cooperative game provides a mathematical model for this kind of problem (Malawski et al, 2006).…”

Section: Introductionmentioning

confidence: 99%

Optimized Shapley value cost allocation model for carriers’ collaboration in road haulage transportation

Amuji,

Onwuegbuchunam,

Ogwude

et al. 2024

J. sustain. dev. transp. logist.

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Transportation carriers can achieve significant profit or cost savings if they collaborate rather than engage in wasteful competition among themselves. However, the challenge in cooperative game theory is finding the optimal cost allocation methods to support pecuniary expectations of coalition members. In this paper, we determine cost allocation model that supports horizontal collaboration among transportation carriers involved in downstream distribution of packaged cement from shipper’s processing plant to customer locations in selected states in Nigeria. The study focuses on the relationship between the shipper and haulage carriers that service the transport needs of its geographically distributed customers. A cost allocation mechanism based on game theory is proposed to implement win-win collaboration among the carriers. We applied a Shapley value cost allocation model to fairly distribute the cost savings from operation of five grand coalitions (S) formed by the carriers. The Shapely values were then optimized with mixed integer programming model to realize optimal cost savings from the coalition. The result revealed that the coalitions: S3 (N165,173,700.00) and S4 (N27,200,960.00) contributed significantly to the optimal savings apart from their initial contributions. The path that corresponds to S3 (X3) is the coalition providing service from Calabar to Jos while the path that corresponds to S4 (X4) is the coalition providing service from Calabar to Owerri and the optimal savings is N48,286,760,000.00. Based on these results, we therefore encourage horizontal collaboration among haulage transport providers in their overall interest, that of the shipper and hence ensure supply or distribution chain cost efficiency.

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Section: Introductionmentioning

confidence: 99%

Optimized Shapley value cost allocation model for carriers’ collaboration in road haulage transportation

Amuji,

Onwuegbuchunam,

Ogwude

et al. 2024

J. sustain. dev. transp. logist.

View full text Add to dashboard Cite

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Shapley value cost allocation model for multimodal freight transport carriers

Amuji,

Onwuegbuchunam,

Okeke

et al. 2024

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The downstream petroleum products distribution is beset with significant challenges due to ageing pipeline infrastructure, pipeline vandalism and other logistical constraints. These challenges have given rise to soaring pump prices of premium motor spirit (PMS), product shortages and unavailability across some locations in Nigeria. Thus, deploying alternative transport modes for PMS distribution is explored to improve product distribution efficiency. The decision to combine inland waterway transport (instead of pipeline network) and road transport modes would activate the intrinsic advantages inherent in the multimodal transport system. However, the efficiency outcome of using multi-modes may be eroded if the multimodal transport operators compete (instead of collaborating) in service provisions. This research investigated cost efficiency in cooperative collaboration among multimodal transport carriers. We proposed collaboration among six multimodal transport operators. The aim of encouraging such a large-scale coalition (S) is the expectation that costs emanating from their joint operation would be reduced. We applied the Shapley value cost allocation method to distribute the costs of operation and profit to the collaborators. After the analysis, we observed that the unit cost for coalition S1 was reduced by N17.16 (5.10 %) million naira. Similarly, we observed respective reductions in unit costs for coalitions S2, …, S10. We observed a reduction in cost by N107.84 million naira, which represents a 6.15 % reduction in total unit cost for the multimodal transportation carriers. Thus, the observed cost efficiency represents savings due to distribution chain efficiency if the multimodal transport carriers collaborate to improve product availability. Working as a coalition would offset PMS pump price variation attributable to distribution chain inefficiency.

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Optimization of Sharpley Value Method of Cost Allocation in a Bimodal Transport- Supply Chain Distribution Via Dynamic Programming

Amuji,

Okechukwu,

Obinwanne

et al. 2024

International Journal of Applied Mathematics, Computational Science and Systems Engineering

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In this paper, we proposed a coalition between two modes of transportation, where one provides cargo train and the other provides trucks of capacity 453 tons respectively for the coalition. We have five grand coalitions and four coalitions. The coalitions were distributed along five paths across Nigeria and specialized in the distribution of agricultural produce from the north to the south. Each of the coalition was made up of four transport providers and composed of four legs. Since this is a cooperative game scenario, Sharpley's value method of cost allocation was used to obtain the gains accrued to the grand coalition. The coalition made a total savings of 1259.6 million naira within the period under study. The researchers further developed and applied a Dynamic programming model to the supply chain distribution and obtained an intelligent result. They discovered that if the five coalitions were distributed among the four legs, in this other (1, 1, 2, 1), the grand coalition would make an additional gain of 377.6 million naira. The distribution means that the allocation of the coalition to the third leg should be doubled while the other legs remain as they were. The introduction of the optimization method into the system brought additional revenue to the coalition and increased the total gain to 1637.3 million naira.

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A collaborative approach based on Shapley value for carriers in the supply chain distribution

Cited by 3 publications

References 51 publications

Optimized Shapley value cost allocation model for carriers’ collaboration in road haulage transportation

Optimized Shapley value cost allocation model for carriers’ collaboration in road haulage transportation

Shapley value cost allocation model for multimodal freight transport carriers

Optimization of Sharpley Value Method of Cost Allocation in a Bimodal Transport- Supply Chain Distribution Via Dynamic Programming

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