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Cooperative Transportation Planning and Cost Allocation
Linköping University, Department of Science and Technology, Communications and Transport Systems. Linköping University, Faculty of Science & Engineering.
2015 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

A freight forwarder may consolidate its goods transportations in order to achieve a more efficient operation. When goods transportations are consolidated, they may reduce operational costs, e.g. labor and fuel. This can be further improved if a number of freight forwarders cooperate and consolidate their collective goods transportations, i.e. it is a cooperation between competitors, a coopetition. In order to maintain the cooperation, a suitable business model, in which fair cost allocations plays an important role is essential. The potential by cooperating is not exclusive to freight forwarders, but in fact, any type of goods transportation planning may benefit from cooperation. In this thesis, cooperative game theory is used as an academic tool to study cooperation between stakeholders in different transportation planning applications. Cooperative game theory defines a number of criteria for fair cost allocations.

In Paper 1, the role of the municipality as an enabler of a cooperation between fictitious freight forwarders in an urban area, is studied. In this case, the municipality acts as a stakeholder with unusual characteristics. It is shown that a stable cooperation can be achieved if the municipality is willing to carry some of the cost. This cost is specified and discussed in Paper 1. The results of Paper 2 contribute to game theory by introducing a further development of a cost allocation method. Some small numerical examples are presented in order to illustrate the resulting changes. In Paper 3, the process of establishing a cooperation is studied, where the stakeholders, in this case forest companies, join the cooperation sequentially. Who will join and in what order, is not predetermined. It is shown that a stable cooperation can be achieved despite the uncertainty. This is done by using the cost allocation methods presented.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2015. , 47 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1726
National Category
Transport Systems and Logistics Economics and Business
Identifiers
URN: urn:nbn:se:liu:diva-121559DOI: 10.3384/diss.diva-121559Local ID: liu-tek-lic 0280-7971ISBN: 978-91-7685-969-8 (print)OAI: oai:DiVA.org:liu-121559DiVA: diva2:856514
Presentation
2015-10-23, TP1, Täppan, Campus Norrköping, Norrköping, 10:15 (Swedish)
Opponent
Supervisors
Available from: 2015-09-24 Created: 2015-09-24 Last updated: 2015-10-01Bibliographically approved
List of papers
1. Consolidation in Urban Freight Transportation: Cost Allocation Models
Open this publication in new window or tab >>Consolidation in Urban Freight Transportation: Cost Allocation Models
(English)Manuscript (preprint) (Other academic)
Abstract [en]

In this paper, we focus on the role of the municipality, as an enabler of consolidating goods bound for receivers in the city center, as a measure for goods flow improvement in urban freight transportation. A collaboration between freight forwarders and the municipality is studied. We present a cost allocation model based on solution concepts from cooperative game theory in order to allocate the operational costs related to the collaboration. We assume that the municipality is willing to carry some cost to ensure a stable collaboration for the potential benefits received, e.g. reduced traffic congestion. We apply the model on some illustrative examples and discuss the results. In one of the examples, the municipality pays an initial cost, but receives a negative cost allocation that covers this initial cost.

Keyword
Collaboration, Cost Allocation, City Distribution Center, Municipality
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:liu:diva-121556 (URN)
Available from: 2015-09-24 Created: 2015-09-24 Last updated: 2015-09-24
2. A note on the nonuniqueness of the Equal Profit Method
Open this publication in new window or tab >>A note on the nonuniqueness of the Equal Profit Method
2017 (English)In: Applied Mathematics and Computation, ISSN 0096-3003, E-ISSN 1873-5649, Vol. 308, 84-89 p.Article in journal (Refereed) Published
Abstract [en]

When a set of players cooperate, they need to decide how the collective cost should be allocated amongst them. Cooperative game theory provides several methods or solution concepts, that can be used as a tool for cost allocation. In this note, we consider a specific solution concept called the Equal Profit Method (EPM). In some cases, a solution to the EPM is any one of infinitely many solutions. That is, it is not always unique. This leads to a lack of clarity in the characterization of the solutions obtained by the EPM. We present a modified version of the EPM, which unlike its precursor ensures a unique solution. In order to illustrate the differences, we present some numerical examples and comparisons between the two concepts.

Keyword
Game Theory, Unique Solution, Solution Concept, EPM, Linear Programming, Lexicography
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:liu:diva-121557 (URN)10.1016/j.amc.2017.03.018 (DOI)000399591500007 ()
Note

Funding agencies: Swedish Energy Agency

Available from: 2015-09-24 Created: 2015-09-24 Last updated: 2017-05-18
3. Incitements for transportation collaboration by cost allocation
Open this publication in new window or tab >>Incitements for transportation collaboration by cost allocation
Show others...
(English)Manuscript (preprint) (Other academic)
Abstract [en]

In this paper, we focus on how cost allocation can be used as a means to create incentives for collaboration between companies, with the aim of reducing the overall operational cost. Collaboration is assumed to be preceded by a simultaneous invitation of the companies to collaborate with an initiating company. We make use of concepts from cooperative game theory and develop specific cost allocation mechanisms in order to introduce a solid base, a part of a business model, with potential to establish large collaborations among the companies. The cost allocation mechanisms are tested on a case that involves transportation planning activities at forestry companies. Although the case study is from a specific transportation sector, the findings in this paper can be adapted to collaborations in any type of transportation planning activity. Two of the cost allocation mechanisms ensure that any sequence of companies joining the collaboration represent a monotonic path, that is, any sequence of collaborating companies is such that the sequences of allocated costs are non-increasing for all companies.

Keyword
Collaboration, Forest industry, Monotonic Path, Cost Allocation
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:liu:diva-121558 (URN)
Available from: 2015-09-24 Created: 2015-09-24 Last updated: 2015-09-24Bibliographically approved

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