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.
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.
“…There have been some applications of using game theory for cost allocation in forestry. For example, Audy, D'Amours, & Rönnqvist (2007) studied a wood fiber flow collaboration under the leadership of one customer whose objective was to maximize its own payoff, and therefore the collaboration could not gain all the attainable benefits. Similar case studies conducted with furniture companies and forest companies by other researchers (Audy & D'Amours, 2008;Audy, D'Amours, & Rönnqvist, 2012) proved that the leadership could provide better return for companies, and it was usually taken by the company with the highest shipping volume.…”
Section: Collaboration and Game Theorymentioning
confidence: 99%
“…The forestry sector has seen applications of game theory allocation methods, mostly in analyzing collaborative transportation activities. Audy et al (2007) studied the impact of the leaders' behavior in building a wood fiber flow collaboration and sharing the benefits. The leaders had the right to decide the timing and the sequence to take new players into the coalition.…”
Section: Allocation In the Forestry Sectormentioning
The following individuals certify that they have read, and recommend to the Faculty of Graduate and Postdoctoral Studies for acceptance, a thesis entitled: Profit allocation in collaborative bio-energy and bio-fuel supply chains submitted by Yi Gao in partial fulfillment of the requirements for the degree of Master of Science in Forestry
“…From a business point of view, one or a set of the entities will lead in the creation of the coalition. Audy et al (2007) have identified six different forms of leadership currently used in coalition building for the specific problem of log supply to mills. We generalize the proposed type of leadership and identify five different models.…”
Section: Building Coalitionsmentioning
confidence: 99%
“…If the costs are shared, then the leader wants to bring in the bigger entities first and then the smaller ones. If the savings are shared, then the inverse logic would be pursued (Audy et al, 2007).…”
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