Analysis of different cost allocation methods in a collaborative transport setting

Vanovermeire, Christine; Vercruysse, Dries; Sörensen, Kenneth

doi:10.1504/ijeme.2014.066576

Cited by 9 publications

(7 citation statements)

References 19 publications

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“…For all two-partner coalitions, Shapley and ACAM lead to identical cost allocations, regardless of the degree of equality between both carriers. Similar results were found by Vanovermeire et al (2013b) in a collaborative order consolidation context. Second, examining the cost share allocated to the different cooperation participants reveals that the allocation of cost savings is related to the cooperation structure, regardless of the used division mechanism.…”

Section: Cost Allocation Resultssupporting

confidence: 87%

“…On average, collaborative savings of companies with a smaller share in customer demand are highest when costs are divided by means of the Shapley value. A similar result was found by Vanovermeire et al (2013b) in a collaborative order consolidation context.…”

Section: Cost Allocation Resultssupporting

confidence: 86%

“…Verstrepen, 2005;Schmoltzi and Wallenburg, 2011;Vanovermeire et al, 2013a;Vanovermeire et al, 2013b).…”

Section: Degree Of Inequality Equal Differentmentioning

confidence: 99%

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Analysis of collaborative savings and cost allocation techniques for the cooperative carrier facility location problem

Verdonck

Beullens

Caris

et al. 2016

Journal of the Operational Research Society

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Transport companies may cooperate to increase their efficiency levels by e.g. the exchange of orders or vehicle capacity. In this paper a new approach to horizontal carrier collaboration is presented: the sharing of distribution centres (DCs) with partnering organisations. This problem can be classified as a cooperative facility location problem and formulated as an innovative mixed integer linear program. To ensure cooperation sustainability, collaborative costs need to be allocated fairly to the different participants. To analyse the benefits of cooperative facility location and the effects of different cost allocation techniques, numerical experiments based on experimental design are carried out on a U.K.case study. Sharing DCs may lead to significant cost savings up to 21.6%. In contrast to the case of sharing orders or vehicles, there are diseconomies of scale in terms of the number of partners and more collaborative benefit can be expected when partners are unequal in size. Moreover, results indicate that horizontal collaboration at the level of DCs works well with a limited number of partners and can be based on intuitively appealing cost sharing techniques, which may reduce alliance complexity and enforce the strength of mutual partner relationships.

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Section: Cost Allocation Resultssupporting

confidence: 87%

Section: Cost Allocation Resultssupporting

confidence: 86%

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Analysis of collaborative savings and cost allocation techniques for the cooperative carrier facility location problem

Verdonck

Beullens

Caris

et al. 2016

Journal of the Operational Research Society

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“….). In Vanovermeire et al (2013a) and Vanovermeire et al (2013b), we show that, basing the cost allocation on the marginal costs, indeed gives the best incentives to increase cooperative productivity. Both papers discuss how incentives should be given to companies to behave in a flexible manner, i.e., allow time window constraints to be relaxed, as this results in an increased collaboration gain.…”

Section: The Shapley Valuementioning

confidence: 82%

“…Both models developed in this paper assume a horizontal logistics collaboration in which orders are shipped in lanes (i.e., long-haul point-to-point distribution, as seen in Breedam et al (2011) or Vanovermeire et al (2013b)). Starting from a common shared origin (warehouse, region, .…”

Section: Order Synchronization With Soft Time Windows (Sequential Model)mentioning

confidence: 99%

Integration of the cost allocation in the optimization of collaborative bundling

Vanovermeire

Sörensen

2014

Transportation Research Part E: Logistics and Transportation Re

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a b s t r a c tA model is proposed that integrates a cost allocation method -the Shapley value -into the optimization of the synchronized consolidation of transportation orders. By balancing each partner's delivery date changes (when synchronizing) against its allocated profit, it ensures that the operational plan is acceptable by all partners. In comparison to a model that first plans and then divides the costs, this model limits expensive delivery date changes and does not systematically favor a company with a slightly higher cost of change.

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Gain Sharing in Horizontal Logistic Co-operation: A Case Study in the Fresh Fruit and Vegetables Sector

Defryn

Vanovermeire

Sörensen

2015

Contributions to Management Science

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Analysis of different cost allocation methods in a collaborative transport setting

Cited by 9 publications

References 19 publications

Analysis of collaborative savings and cost allocation techniques for the cooperative carrier facility location problem

Analysis of collaborative savings and cost allocation techniques for the cooperative carrier facility location problem

Integration of the cost allocation in the optimization of collaborative bundling

Gain Sharing in Horizontal Logistic Co-operation: A Case Study in the Fresh Fruit and Vegetables Sector

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