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

Research output: Contribution to conferencePaper

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 languageEnglish
Publication statusPublished - 3 Jul 2017
Event24th EurOMA conference : Inspiring Operations Management - Heriot Watt University, Edinburgh, United Kingdom
Duration: 1 Jul 20175 Jul 2017
http://euroma2017.org/

Conference

Conference24th EurOMA conference
Abbreviated titleEurOMA 2017
CountryUnited Kingdom
CityEdinburgh
Period1/07/175/07/17
Internet address

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