Consolidation in Urban Freight Transportation — Cost Allocation Models

Joen Dahlberg, Stefan Engevall () and Maud Göthe-Lundgren ()
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Joen Dahlberg: Department of Science and Technology, Linköping University, Norrköping, Sweden
Stefan Engevall: Department of Science and Technology, Linköping University, Norrköping, Sweden
Maud Göthe-Lundgren: Department of Science and Technology, Linköping University, Norrköping, Sweden

Asia-Pacific Journal of Operational Research (APJOR), 2018, vol. 35, issue 04, 1-23

Abstract: In this paper, the focus is on the role of the municipality, as an enabler of a collaboration between freight forwarders and the municipality in which the consolidation of goods is considered as a means for goods flow improvement in urban freight transportation. We present a cost allocation model that is based on solution concepts from cooperative game theory, for allocating the operational costs associated with the collaboration. It is assumed that the municipality is willing to carry some cost to ensure a stable collaboration for the potential benefits received, e.g., reduced traffic congestion in the city. The model is applied to some illustrative examples, and the cost allocation results are discussed. It is shown that the role of the municipality may be decisive in achieving a stable collaboration between the freight forwarders, and further that the municipality does not necessarily need to contribute to covering the costs.

Keywords: Collaboration; cost allocation; city distribution center; municipality (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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DOI: 10.1142/S0217595918500239

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