Integration of the cost allocation in the optimization of collaborative bundling

Christine Vanovermeire and Kenneth Sörensen

Transportation Research Part E: Logistics and Transportation Review, 2014, vol. 72, issue C, 125-143

Abstract: A 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.

Keywords: Collaboration; Logistics; Bundling; Cost allocation; Shapley value; Matheuristic (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (12)

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DOI: 10.1016/j.tre.2014.09.009

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