A review on cost allocation methods in collaborative transportation

Collaboration in transportation between two or more agents is becoming an important approach to find efficient solutions or plans. Efficiency can be measured in, for example, lower cost or more flexibility. An important aspect of the collaboration is to decide on how to share the benefits—for example, cost, profit, or resources. There are many sharing mechanisms or cost allocations proposed in the literature. Some are based on simple proportional rules and others are based on theoretical concepts found in game theory. We provide a survey on cost allocation methods found in the literature on collaborative transportation, including problems on planning, vehicle routing, traveling salesman, distribution, and inventory. A total of 55 scientific articles compose the main part of the survey, most of them published between 2010 and 2015. We identify more than 40 cost allocation methods used in this stream of literature. We describe the theoretical basis for the main methods as well as the cases where they are used. We also report savings from the collaborations when they are based on industrial data. Some directions for future research are discussed.

[1]  Herbert Hamers,et al.  Cost allocation in the Chinese postman problem , 1999, Eur. J. Oper. Res..

[2]  Feng Yang,et al.  Collaborative distribution between two logistics service providers , 2016, Int. Trans. Oper. Res..

[3]  Peter Borm,et al.  On the core of routing games with revenues , 2009, Int. J. Game Theory.

[4]  Martin W. P. Savelsbergh,et al.  Allocating Cost of Service to Customers in Inventory Routing , 2013, Oper. Res..

[5]  M. G. Fiestras-Janeiro,et al.  Cost allocation in inventory transportation systems , 2012 .

[6]  Eitan Zemel,et al.  A General Framework for the Study of Decentralized Distribution Systems , 2001, Manuf. Serv. Oper. Manag..

[7]  Ulrich Derigs,et al.  Cooperative planning in express carrier networks - An empirical study on the effectiveness of a real-time Decision Support System , 2011, Decis. Support Syst..

[8]  Bastian Fromen,et al.  Reducing the number of linear programs needed for solving the nucleolus problem of n-person game theory , 1997 .

[9]  L. Shapley Cores of convex games , 1971 .

[10]  Gilbert Laporte,et al.  The vehicle routing problem: An overview of exact and approximate algorithms , 1992 .

[11]  Herbert Hamers,et al.  Operations research games: A survey , 2001 .

[12]  Mikael Rönnqvist,et al.  A framework for an efficient implementation of logistics collaborations , 2012, Int. Trans. Oper. Res..

[13]  J. Neumann,et al.  Theory of games and economic behavior , 1945, 100 Years of Math Milestones.

[14]  Joaquín Sánchez-Soriano,et al.  An Integrated Transport System for Alacant's Students. UNIVERCITY , 2002, Ann. Oper. Res..

[15]  Mikael Rönnqvist,et al.  Constructive and blocking power in collaborative transportation , 2016, OR Spectr..

[16]  Moshe Haviv,et al.  The Cost Allocation Problem for the First Order Interaction Joint Replenishment Model , 2007, Oper. Res..

[17]  Mikael Rönnqvist,et al.  Operations research models for coalition structure in collaborative logistics , 2015, Eur. J. Oper. Res..

[18]  Alberto Caprara,et al.  New techniques for cost sharing in combinatorial optimization games , 2010, Math. Program..

[19]  Herbert Kopfer,et al.  Collaborating freight forwarding enterprises , 2006, OR Spectr..

[20]  Matthew O. Jackson,et al.  Allocation Rules for Network Games , 2003, Games Econ. Behav..

[21]  Angel A. Juan,et al.  Horizontal cooperation in road transportation: a case illustrating savings in distances and greenhouse gas emissions , 2015, Int. Trans. Oper. Res..

[22]  G. Laporte The traveling salesman problem: An overview of exact and approximate algorithms , 1992 .

[23]  Mikael Rönnqvist,et al.  Potential savings and cost allocations for forest fuel transportation in Sweden: A country-wide study , 2015 .

[24]  Haoxun Chen,et al.  Proportional egalitarian core solution for profit allocation games with an application to collaborative transportation planning , 2015 .

[25]  Peng Liu,et al.  Allocating Collaborative Profit in Less-than-Truckload Carrier Alliance , 2010 .

[26]  Edward C. Rosenthal Cooperative games arising from network flow problems , 1991 .

[27]  Svetlana Tarashnina,et al.  The simplified modified nucleolus of a cooperative TU-game , 2011 .

[28]  Mikael Rönnqvist,et al.  An Educational Game in Collaborative Logistics , 2013, INFORMS Trans. Educ..

[29]  D. Cattrysse,et al.  Cost allocation in spare parts inventory pooling , 2007 .

[30]  Gilbert Laporte,et al.  Horizontal cooperation among freight carriers: request allocation and profit sharing , 2008, J. Oper. Res. Soc..

[31]  Kenneth Sörensen,et al.  Integration of the cost allocation in the optimization of collaborative bundling , 2014 .

[32]  Sándor P. Fekete,et al.  On approximately fair cost allocation in Euclidean TSP games , 1998, Electron. Colloquium Comput. Complex..

[33]  Dov Samet,et al.  An Application of the Aumann-Shapley Prices for Cost Allocation in Transportation Problems , 1984, Math. Oper. Res..

[34]  Ichiro Nishizaki,et al.  Fuzzy programming and profit and cost allocation for a production and transportation problem , 2001, Eur. J. Oper. Res..

[35]  Jeroen Kuipers,et al.  On the core of routing games , 1997 .

[36]  Özlem Ergun,et al.  Network Design and Allocation Mechanisms for Carrier Alliances in Liner Shipping , 2010, Oper. Res..

[37]  M. Jackson,et al.  A Strategic Model of Social and Economic Networks , 1996 .

[38]  F. L. Hitchcock The Distribution of a Product from Several Sources to Numerous Localities , 1941 .

[39]  Wei-Hua Lin,et al.  Allocating the cost of empty railcar miles in a dynamic railroad network , 2013 .

[40]  Sebastián Lozano,et al.  Cooperative game theory approach to allocating benefits of horizontal cooperation , 2013, Eur. J. Oper. Res..

[41]  André Langevin,et al.  Collaboration for a two-echelon supply chain in the pulp and paper industry: the use of incentives to increase profit , 2011, J. Oper. Res. Soc..

[42]  S. Verstrepen,et al.  Horizontal logistics collaboration: decreasing costs through flexibility and an adequate cost allocation strategy , 2014 .

[43]  Tom Van Woensel,et al.  A competitive solution for cooperative truckload delivery , 2016, OR Spectr..

[44]  Moshe Dror,et al.  Cost allocation: the traveling salesman, binpacking, and the knapsack , 1990 .

[45]  W. Dullaert,et al.  Horizontal Cooperation in Transport and Logistics: A Literature Review , 2007, Transportation Journal.

[46]  Peter Sudhölter,et al.  The modified nucleolus: properties and axiomatizations , 1997 .

[47]  Peter Borm,et al.  Congestion Network Problems and Related Games , 2003 .

[48]  Xin Fang,et al.  Stability and Endogenous Formation of Inventory Transshipment Networks , 2014, Oper. Res..

[49]  Bo Dai,et al.  Profit allocation mechanisms for carrier collaboration in pickup and delivery service , 2012, Comput. Ind. Eng..

[50]  Stéphane Tchung-Ming,et al.  Cooperation among liquefied natural gas suppliers: Is rationalization the sole objective? , 2010 .

[51]  Peter Värbrand,et al.  On the nucleolus of the basic vehicle routing game , 1996, Math. Program..

[52]  L. Shapley A Value for n-person Games , 1988 .

[53]  Markus Bläser,et al.  Approximately Fair Cost Allocation in Metric Traveling Salesman Games , 2007, Theory of Computing Systems.

[54]  P. Straffin,et al.  Game theory and the tennessee valley authority , 1981 .

[55]  Maged M. Dessouky,et al.  Online Cost-Sharing Mechanism Design for Demand-Responsive Transport Systems , 2015, IEEE Transactions on Intelligent Transportation Systems.

[56]  Ozhan Yilmaz,et al.  Production , Manufacturing and Logistics Collaboration among small shippers in a transportation market , 2011 .

[57]  Louis-Martin Rousseau,et al.  Cost allocation in the establishment of a collaborative transportation agreement—an application in the furniture industry , 2010, J. Oper. Res. Soc..

[58]  Özlem Ergun,et al.  Allocating Costs in a Collaborative Transportation Procurement Network , 2008, Transp. Sci..

[59]  Dong-Ju Lee,et al.  Procedure for Bridge Construction Cost Allocation Based on Game Theory , 2007 .

[60]  P. C. Fishburn,et al.  Fixed-Route Cost Allocation , 1983 .

[61]  M. Gloria Fiestras-Janeiro,et al.  Cooperative games and cost allocation problems , 2011 .

[62]  Ralph Haas,et al.  Pavement and Bridge Cost Allocation Analysis of the Ontario, Canada, Intercity Highway Network , 2000 .

[63]  M. Dessouky,et al.  Consolidation strategies for the delivery of perishable products , 2014 .

[64]  Okan Örsan Özener,et al.  Developing a Collaborative Planning Framework for Sustainable Transportation , 2014 .

[65]  Mario Guajardo,et al.  Common Mistakes in Computing the Nucleolus , 2014 .

[66]  Mikael Rönnqvist,et al.  Cost Allocation in Collaborative Forest Transportation , 2006, Eur. J. Oper. Res..

[67]  Duygu Yengin Characterizing the Shapley value in fixed-route traveling salesman problems with appointments , 2012, Int. J. Game Theory.

[68]  E. Kalai Proportional Solutions to Bargaining Situations: Interpersonal Utility Comparisons , 1977 .

[69]  Peter Värbrand,et al.  The traveling salesman game: An application ofcost allocation in a gas and oil company , 1998, Ann. Oper. Res..

[70]  Herbert Hamers,et al.  Production , Manufacturing and Logistics Supplier-initiated outsourcing : A methodology to exploit synergy in transportation , 2010 .

[71]  Lei Sun,et al.  Transportation cost allocation on a fixed route , 2015, Comput. Ind. Eng..

[72]  Arie Tamir,et al.  On the core of a traveling salesman cost allocation game , 1989 .

[73]  Stef Tijs,et al.  Traveling salesman games , 1992, Math. Program..

[74]  Christian Bierwirth,et al.  Solutions to the request reassignment problem in collaborative carrier networks , 2010 .

[75]  D. Schmeidler The Nucleolus of a Characteristic Function Game , 1969 .

[76]  Peter Värbrand,et al.  The Heterogeneous Vehicle - Routing Game , 2004, Transp. Sci..

[77]  Mikael Rönnqvist,et al.  An empirical study on coalition formation and cost/savings allocation , 2012 .

[78]  M. Gloria Fiestras-Janeiro,et al.  A new cost allocation rule for inventory transportation systems , 2013, Oper. Res. Lett..

[79]  Alejandro Toriello,et al.  Technical Note - On Traveling Salesman Games with Asymmetric Costs , 2013, Oper. Res..

[80]  Herbert Hamers,et al.  On Chinese postman games where residents of each road pay the cost of their road , 2011, Games Econ. Behav..

[81]  Kenneth Sörensen,et al.  Measuring and rewarding flexibility in collaborative distribution, including two-partner coalitions , 2014, Eur. J. Oper. Res..

[82]  Xiaolei Ma,et al.  A Methodology to Exploit Profit Allocation in Logistics Joint Distribution Network Optimization , 2015 .

[83]  Imma Curiel,et al.  Cooperative Combinatorial Games , 2008 .

[84]  Victor V. Zakharov,et al.  Stable cooperation in dynamic vehicle routing problems , 2015, Autom. Remote. Control..

[85]  A. Kopelowitz COMPUTATION OF THE KERNELS OF SIMPLE GAMES AND THE NUCLEOLUS OF N-PERSON GAMES. , 1967 .