Allocating Cost In Horizontal Collaboration: An Analysis Of The UK FMCG Road Freight Transport Sector

Pratyush Dadhich; Philip Greening; Christine Rutherford

Allocating Cost In Horizontal Collaboration: An Analysis Of The UK FMCG Road Freight Transport Sector

Pratyush Dadhich, Philip Greening, Christine Rutherford

School of Social Sciences

Research output: Contribution to conference › Paper › peer-review

Abstract

Horizontal collaboration could increase logistics cost savings by bundling orders and reducing empty vehicle trips. However, many barriers still impede a widespread adoption of horizontal collaboration in logistics. Among the various barriers, 'determining and dividing' gains among the collaborating partners has proved to be a challenging task. Cooperative game theory (CGT) provides a framework to determine and divide these gains. This paper is focussed on the implementation of the CGT method Shapley value to allocate cost savings and understand scalability issues which FMCG companies may face when collaborating on road freight transport flows.

Original language	English
Publication status	Published - 3 Jul 2017
Event	24th Annual EurOMA Conference 2017 - Heriot Watt University, Edinburgh, United Kingdom Duration: 1 Jul 2017 → 5 Jul 2017 http://euroma2017.org/

Conference

Conference	24th Annual EurOMA Conference 2017
Abbreviated title	EurOMA 2017
Country/Territory	United Kingdom
City	Edinburgh
Period	1/07/17 → 5/07/17
Internet address	http://euroma2017.org/

Cite this

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title = "Allocating Cost In Horizontal Collaboration: An Analysis Of The UK FMCG Road Freight Transport Sector",

abstract = "Horizontal collaboration could increase logistics cost savings by bundling orders and reducing empty vehicle trips. However, many barriers still impede a widespread adoption of horizontal collaboration in logistics. Among the various barriers, 'determining and dividing' gains among the collaborating partners has proved to be a challenging task. Cooperative game theory (CGT) provides a framework to determine and divide these gains. This paper is focussed on the implementation of the CGT method Shapley value to allocate cost savings and understand scalability issues which FMCG companies may face when collaborating on road freight transport flows. ",

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AU - Greening, Philip

AU - Rutherford, Christine

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Y1 - 2017/7/3

N2 - Horizontal collaboration could increase logistics cost savings by bundling orders and reducing empty vehicle trips. However, many barriers still impede a widespread adoption of horizontal collaboration in logistics. Among the various barriers, 'determining and dividing' gains among the collaborating partners has proved to be a challenging task. Cooperative game theory (CGT) provides a framework to determine and divide these gains. This paper is focussed on the implementation of the CGT method Shapley value to allocate cost savings and understand scalability issues which FMCG companies may face when collaborating on road freight transport flows.

AB - Horizontal collaboration could increase logistics cost savings by bundling orders and reducing empty vehicle trips. However, many barriers still impede a widespread adoption of horizontal collaboration in logistics. Among the various barriers, 'determining and dividing' gains among the collaborating partners has proved to be a challenging task. Cooperative game theory (CGT) provides a framework to determine and divide these gains. This paper is focussed on the implementation of the CGT method Shapley value to allocate cost savings and understand scalability issues which FMCG companies may face when collaborating on road freight transport flows.

M3 - Paper

T2 - 24th Annual EurOMA Conference 2017

Y2 - 1 July 2017 through 5 July 2017

ER -

Allocating Cost In Horizontal Collaboration: An Analysis Of The UK FMCG Road Freight Transport Sector

Abstract

Conference

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