A COOPERATIVE GAME-THEORETIC NETWORK DESIGN FOR COLLABORATIVE OPERATION OF SERVICE CENTERS AND CONSOLIDATION TERMINALS IN DELIVERY SERVICES
DOI:
https://doi.org/10.23055/ijietap.2018.25.1.3699Keywords:
supply chain managementAbstract
The delivery service has emerged as one of promising business fields with the record of over 10 percent in annual growth rate since last decade. As a result, numerous delivery service companies have been established and they are striving to survive in fierce competition among each other to expand their own market share. Under these difficult circumstances, small and medium-sized companies (SMCs) in particular with relatively poor network infrastructure are faced with tougher situations, such as problems with reducing the cost and making efficient improvement using their logistics networks. Therefore, collaborative operation of SMCs may be one of a useful way to cope with these challenges. This study suggests a collaboration model to increase the competitiveness of every participating company through a monopoly of service centers and sharing of consolidation terminals. In addition, Shapley value and weighted Shapley value are applied as systematic methodologies for fair allocation of the profits to every each company based on a cooperative game theory. An illustrative example problem demonstrates the applicability and efficiency of the proposed model.
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