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.
|Publication status||Published - 3 Jul 2017|
|Event||24th EurOMA conference : Inspiring Operations Management - Heriot Watt University, Edinburgh, United Kingdom|
Duration: 1 Jul 2017 → 5 Jul 2017
|Conference||24th EurOMA conference|
|Abbreviated title||EurOMA 2017|
|Period||1/07/17 → 5/07/17|
Dadhich, P., Greening, P., & Rutherford, C. (2017). Allocating Cost In Horizontal Collaboration: An Analysis Of The UK FMCG Road Freight Transport Sector. Paper presented at 24th EurOMA conference , Edinburgh, United Kingdom.