Facultade de Fisioterapia

Cost allocation in inventory transportation systems

Fiestras Janeiro, María Gloria; García Jurado, I.; Meca, A.; Mosquera Rodríguez, Manuel Alfredo
Abstract:
In this paper, we deal with the cost allocation problem arising in an inventory transportation system with a single item and multiple agents that place joint orders using an EOQ policy. In our problem, the fixed-order cost of each agent is the sum of a first component (common to all agents) plus a second component which depends on the distance from the agent to the supplier. We assume that agents are located on a line route, in the sense that if any subgroup of agents places a joint order, its fixed cost is the sum of the first component plus the second component of the agent in the group at maximal distance from the supplier. For these inventory transportation systems, we introduce and characterize a rule which allows us to allocate the costs generated by the joint order. This rule has the same flavor as the Shapley value, but requires less computational effort. We show that our rule has good properties from the point of view of stability.
Year:
2012
Type of Publication:
Article
Keywords:
Inventory transportation systems; Cooperative games; Core; Cost allocation rule
Journal:
TOP
Volume:
20
Number:
2
Pages:
397-410
Month:
July
DOI:
http://dx.doi.org/10.1007/s11750-011-0207-7
Hits: 1409