Frisk, Mikael () (Skogforsk, Uppsala) Göthe-Lundgren, Maud () (Department of Mathematics, Linköpings universitet) Jörnsten, Kurt () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration) Rönnqvist, Mikael () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)
Abstract
Transportation planning is an important part of the wood flow chain in forestry. There are often several forest companies operating in the same region and co-ordination between two or more companies is rare. However, there is an increasing interest in collaborative planning as the potential savings are large, often in the range 5-15%. A key question is how savings should be distributed among the participants. In this paper we investigate a number of possibilities based on economic models including Shapley value, the nucleolus, separable and non-separable costs, shadow prices and volume weights. We also propose a new allocation method based on finding as equal relative profits as possible among the participants. A case study including eight forest companies is described and analyzed.
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Publisher Info
Paper provided by Department of Finance and Management Science, Norwegian School of Economics and Business Administration in its series Discussion Papers with number
2006/15.
Length: 27 pages Date of creation: 03 Nov 2006 Date of revision: Handle: RePEc:hhs:nhhfms:2006_015
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