TY - JOUR
T1 - The sharing of benefits from a logistics alliance based on a hub-spoke network
T2 - A cooperative game theoretic approach
AU - Yea, Minyoung
AU - Chung, Seokhyun
AU - Cheong, Taesu
AU - Kim, Daeki
N1 - Funding Information:
We would like to thank three anonymous reviewers for their valuable comments. This research was supported by Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education (No. NRF-2018R1D1A1B07047651).
Funding Information:
Acknowledgments: We would like to thank three anonymous reviewers for their valuable comments. This research was supported by Basic Science Research Program through the National Research Foundation of Korea (NRF) funded by the Ministry of Education (No. NRF-2018R1D1A1B07047651).
Publisher Copyright:
© 2018 by the authors.
PY - 2018/6/3
Y1 - 2018/6/3
N2 - This study investigates a strategic alliance as a horizontal cooperation in the logistics and transportation industries by considering various sharing rules with a cooperative game approach. Through forging a strategic alliance, carriers gain extra benefits from resource sharing and high efficiency resource utilization. In particular, our research focuses on the cost savings from using larger vehicles utilizing collective market demand and regarding them as benefits of cooperation. The model conceptualizes the characteristic function of cost savings by coalitions that take into account the hub-spoke network which is common in transportation services. To share the improved profits fairly between members, we use different allocation schemes: the Shapley value, the core center, the τ-value, and the nucleolus. By analyzing those cooperative game theoretic solutions employing an alliance composed of three carriers, we investigate whether satisfaction in this specific coalition provides an incentive for carriers to join such a coalition. Our results from the analysis, with respect to fair allocation schemes, provide a practical and academic foundation for further research.
AB - This study investigates a strategic alliance as a horizontal cooperation in the logistics and transportation industries by considering various sharing rules with a cooperative game approach. Through forging a strategic alliance, carriers gain extra benefits from resource sharing and high efficiency resource utilization. In particular, our research focuses on the cost savings from using larger vehicles utilizing collective market demand and regarding them as benefits of cooperation. The model conceptualizes the characteristic function of cost savings by coalitions that take into account the hub-spoke network which is common in transportation services. To share the improved profits fairly between members, we use different allocation schemes: the Shapley value, the core center, the τ-value, and the nucleolus. By analyzing those cooperative game theoretic solutions employing an alliance composed of three carriers, we investigate whether satisfaction in this specific coalition provides an incentive for carriers to join such a coalition. Our results from the analysis, with respect to fair allocation schemes, provide a practical and academic foundation for further research.
KW - Cooperative game theory
KW - Cost allocation
KW - Logistics alliance
KW - Strategic alliance
UR - http://www.scopus.com/inward/record.url?scp=85048079650&partnerID=8YFLogxK
U2 - 10.3390/su10061855
DO - 10.3390/su10061855
M3 - Article
AN - SCOPUS:85048079650
SN - 2071-1050
VL - 10
JO - Sustainability (Switzerland)
JF - Sustainability (Switzerland)
IS - 6
M1 - 1855
ER -
