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Consolidation in Urban Freight Transportation — Cost Allocation Models

Author

Listed:
  • Joen Dahlberg

    (Department of Science and Technology, Linköping University, Norrköping, Sweden)

  • Stefan Engevall

    (Department of Science and Technology, Linköping University, Norrköping, Sweden)

  • Maud Göthe-Lundgren

    (Department of Science and Technology, Linköping University, Norrköping, Sweden)

Abstract

In this paper, the focus is on the role of the municipality, as an enabler of a collaboration between freight forwarders and the municipality in which the consolidation of goods is considered as a means for goods flow improvement in urban freight transportation. We present a cost allocation model that is based on solution concepts from cooperative game theory, for allocating the operational costs associated with the collaboration. It is assumed that the municipality is willing to carry some cost to ensure a stable collaboration for the potential benefits received, e.g., reduced traffic congestion in the city. The model is applied to some illustrative examples, and the cost allocation results are discussed. It is shown that the role of the municipality may be decisive in achieving a stable collaboration between the freight forwarders, and further that the municipality does not necessarily need to contribute to covering the costs.

Suggested Citation

  • Joen Dahlberg & Stefan Engevall & Maud Göthe-Lundgren, 2018. "Consolidation in Urban Freight Transportation — Cost Allocation Models," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 35(04), pages 1-23, August.
    • Handle: RePEc:wsi:apjorx:v:35:y:2018:i:04:n:s0217595918500239
    DOI: 10.1142/S0217595918500239
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    References listed on IDEAS

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    Cited by:

    1. Francesco Ciardiello & Andrea Genovese & Shucheng Luo & Antonino Sgalambro, 2023. "A game-theoretic multi-stakeholder model for cost allocation in urban consolidation centres," Annals of Operations Research, Springer, vol. 324(1), pages 663-686, May.
    2. Mathijs van Zon & Remy Spliet & Wilco van den Heuvel, 2021. "The Joint Network Vehicle Routing Game," Transportation Science, INFORMS, vol. 55(1), pages 179-195, 1-2.

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