Title: Application of improved Shapley value method in profit distribution of on-site logistics alliance

Authors: Yu Li Hu; Cheng Ji Liang; Shi Yuan Zheng

Addresses: Institute of Logistics Science and Engineering, Shanghai Maritime University, Shanghai, 201306, China ' Institute of Logistics Science and Engineering, Shanghai Maritime University, Shanghai, 201306, China ' College of Transport and Communications, Shanghai Maritime University, Shanghai, 201306, China

Abstract: To ensure the healthy development of the cooperation alliance between manufacturing enterprises and logistics providers, the on-site logistics participants need to work together to generate incremental profits for the alliance. The reasonable distribution of incremental profits among alliance members will make the alliance structure more solid. Constructing a cooperative game model provides action decision guidance under Nash equilibrium for the three participants involved. In order to make the distribution of incremental profits more equitable, a distribution scheme based on the contribution degree of all participants to the alliance is proposed, and further, the AHP-Shapley value method with the introduction of effectiveness impact factors is established. The results of trial calculations and analysis make the distribution of incremental profits more scientific. Research shows that under the guidance of incremental profits allocation, the participants in the cooperative alliance will achieve their ideal expected returns in a stable structure.

Keywords: incremental profit distribution; improved Shapley value; on-site logistics; logistics cost; cooperative game.

DOI: 10.1504/IJIMS.2024.142535

International Journal of Internet Manufacturing and Services, 2024 Vol.10 No.4, pp.305 - 328

Received: 08 Mar 2023
Accepted: 08 Sep 2023
Published online: 08 Nov 2024 *

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