An empirical study on coalition formation and cost/savings allocation

Jean-François Audy, D’Amours, Sophie and Mikael Rönnqvist

International Journal of Production Economics, 2012, vol. 136, issue 1, 13-27

Abstract: Interest has been raised by the recent identification of potential savings through collaborative planning in logistics operations. Even though substantial savings can be realized, two key questions exist: (i) how should potential savings be divided among a group of collaborating companies and (ii) among potential collaborating companies, how should collaborating group(s) be formed? These two questions are studied in a specific context: among potential collaborating companies; a subset, denoted the leading companies, performs collaborative planning on behalf of the others and together, they initiate formation of a collaborating group. We use the concept of a business model to detail such context. Based on the literature on network formation where potential savings are modelled by a cooperative game, four business models are explored in four different subsets of leading companies. We propose a network model as a method to determine the stable collaborating group in each computation. A case study including eight forest companies is described and analyzed. Results show that very different solution characteristics can be achieved depending on the business model selected.

Keywords: Game theory; OR in forestry; Transportation; Graph theory; Collaboration (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:136:y:2012:i:1:p:13-27

DOI: 10.1016/j.ijpe.2011.08.027

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