“…In Audy et al (2012), the same transportation planning case study is considered as the one used in this paper, and four leading coalitions: {B}, {A, E}, {C, F} and {A, D, G, H } are studied in the same context as this paper, that is, the same case study. The choice of leading coalitions is based on the sizes of the companies and their geographic locations.…”
Section: Leading Coalitionmentioning
confidence: 99%
“…Collaborative planning in logistics operations is studied in Audy et al (2012), and their case study is based on the same data as the case study of this paper. Companies are joining a collaboration sequentially.…”
In this paper, we focus on how cost allocation can be used as a means to create incentives for collaboration among companies, with the aim of reducing the total transportation cost. The collaboration is assumed to be preceded by a simultaneous invitation of the companies to collaborate. We make use of concepts from cooperative game theory, including the Shapley value, the Nucleolus and the EPM, and develop specific cost allocation mechanisms aiming to achieve large collaborations among many companies. The cost allocation mechanisms are tested on a case study that involves transportation planning activities. Although the case study is from a specific transportation sector, the findings in this paper can be adapted to collaborations in other types of transportation planning activities. Two of the cost allocation mechanisms ensure that any sequence of companies joining the collaboration represents a complete monotonic path, that is, any sequence of collaborating companies is such that the sequences of allocated costs are non-increasing for all companies.
“…In Audy et al (2012), the same transportation planning case study is considered as the one used in this paper, and four leading coalitions: {B}, {A, E}, {C, F} and {A, D, G, H } are studied in the same context as this paper, that is, the same case study. The choice of leading coalitions is based on the sizes of the companies and their geographic locations.…”
Section: Leading Coalitionmentioning
confidence: 99%
“…Collaborative planning in logistics operations is studied in Audy et al (2012), and their case study is based on the same data as the case study of this paper. Companies are joining a collaboration sequentially.…”
In this paper, we focus on how cost allocation can be used as a means to create incentives for collaboration among companies, with the aim of reducing the total transportation cost. The collaboration is assumed to be preceded by a simultaneous invitation of the companies to collaborate. We make use of concepts from cooperative game theory, including the Shapley value, the Nucleolus and the EPM, and develop specific cost allocation mechanisms aiming to achieve large collaborations among many companies. The cost allocation mechanisms are tested on a case study that involves transportation planning activities. Although the case study is from a specific transportation sector, the findings in this paper can be adapted to collaborations in other types of transportation planning activities. Two of the cost allocation mechanisms ensure that any sequence of companies joining the collaboration represents a complete monotonic path, that is, any sequence of collaborating companies is such that the sequences of allocated costs are non-increasing for all companies.
“…Therefore, we discuss different business models and behavior and how the coalitions can be formed. More information and results based on the case study can be found in Audy et al (2012).…”
Section: Company 1 Company 2 Company 3 Companymentioning
W e describe an educational game in collaborative logistics. The game is based on an award-winning application in cost allocation in transportation. The purpose of the game is to acquire an understanding of negotiation, coalition building, and cost/profit sharing when the players have different powers and hold different levels of information. The game is played with each player representing a single company. The challenge for the players is to find an efficient coalition and to share the benefits and costs of the collaboration. We describe the underlying case study, review basic concepts in game theory, outline the teaching case, and discuss experiences from running the game in several countries and with students in business, engineering, and forestry.
Abstract-In all industries, competition between business organizations is vital to utilize collaborative logistics for planning, forecasting and efficient customer response to optimize the supply chain. Consequently, numerous business organizations build coalitions among themselves making their partnerships more effective.The main goal of this study is to investigate how pairwise comparisons can identify near optimal coalition (related to collective intelligence in terms of computer science) for a group of independent business organizations.Case studies are used to demonstrate the utility of the framework.
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