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Core-based cost allocation in the cooperative traveling salesman problem

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  • Kimms, A.
  • Kozeletskyi, I.

Abstract

This paper presents a cost allocation scheme for a horizontal cooperation of traveling salesmen that is implemented a priori and provides expected costs for the coalition members. The cost allocation is determined using the core concept. To compute the value of the characteristic function over the whole planning horizon the TSP with release dates combined with simulation is used. The developed core computation algorithm, based on mathematical programming techniques, provides a core element or, in case of an empty core, a least-core element. To decrease the computational effort of core computation a row generation procedure is implemented. The developed computation study tests the computational performance of the solution procedure.

Suggested Citation

  • Kimms, A. & Kozeletskyi, I., 2016. "Core-based cost allocation in the cooperative traveling salesman problem," European Journal of Operational Research, Elsevier, vol. 248(3), pages 910-916.
  • Handle: RePEc:eee:ejores:v:248:y:2016:i:3:p:910-916
    DOI: 10.1016/j.ejor.2015.08.002
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    References listed on IDEAS

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    1. Cruijssen, Frans & Cools, Martine & Dullaert, Wout, 2007. "Horizontal cooperation in logistics: Opportunities and impediments," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 129-142, March.
    2. Audy, Jean-François & D’Amours, Sophie & Rönnqvist, Mikael, 2012. "An empirical study on coalition formation and cost/savings allocation," International Journal of Production Economics, Elsevier, vol. 136(1), pages 13-27.
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    7. Lozano, S. & Moreno, P. & Adenso-Díaz, B. & Algaba, E., 2013. "Cooperative game theory approach to allocating benefits of horizontal cooperation," European Journal of Operational Research, Elsevier, vol. 229(2), pages 444-452.
    8. Berger, Susanne & Bierwirth, Christian, 2010. "Solutions to the request reassignment problem in collaborative carrier networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 627-638, September.
    9. Potters, J.A.M. & Curiel, I. & Tijs, S.H., 1992. "Traveling salesman games," Other publications TiSEM 0dd4cf3d-25fa-4179-80f6-6, Tilburg University, School of Economics and Management.
    10. Drechsel, J. & Kimms, A., 2010. "Computing core allocations in cooperative games with an application to cooperative procurement," International Journal of Production Economics, Elsevier, vol. 128(1), pages 310-321, November.
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    Cited by:

    1. Zhou, Weihua & Pu, Yaqi & Dai, Hongyan & Jin, Qingwei, 2017. "Cooperative interconnection settlement among ISPs through NAP," European Journal of Operational Research, Elsevier, vol. 256(3), pages 991-1003.
    2. Liebmann, Thomas & Kassberger, Stefan & Hellmich, Martin, 2017. "Sharing and growth in general random multiplicative environments," European Journal of Operational Research, Elsevier, vol. 258(1), pages 193-206.

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