TY - JOUR
T1 - A versatile framework for cooperative hub network development
AU - Cruijssen, F.
AU - Borm, P.E.M.
AU - Dullaert, W.
AU - Hamers, H.J.M.
N1 - Appeared earlier as CentER DP 2007-76 (rt)
PY - 2010
Y1 - 2010
N2 - This paper introduces a framework for cooperative hub network development. Building a joint physical hub for the transshipment of goods is expensive and, therefore, involves considerable risks for cooperating companies. In a practical setting, it is unlikely that an entire network will be built at once. Rather, the partners will have a more cautious attitude and build hub facilities one by one. In the proposed framework, each time a new hub is introduced, the partners will have the opportunity to decide whether or not they will participate (and thus, invest) in this network extension. In addition, joint cost savings will be allocated to the partners using the Shapley value, a well-known solution concept from cooperative game theory. This framework can accommodate any type of optimisation procedure for network design.
AB - This paper introduces a framework for cooperative hub network development. Building a joint physical hub for the transshipment of goods is expensive and, therefore, involves considerable risks for cooperating companies. In a practical setting, it is unlikely that an entire network will be built at once. Rather, the partners will have a more cautious attitude and build hub facilities one by one. In the proposed framework, each time a new hub is introduced, the partners will have the opportunity to decide whether or not they will participate (and thus, invest) in this network extension. In addition, joint cost savings will be allocated to the partners using the Shapley value, a well-known solution concept from cooperative game theory. This framework can accommodate any type of optimisation procedure for network design.
U2 - 10.1504/EJIE.2010.031078
DO - 10.1504/EJIE.2010.031078
M3 - Article
VL - 4
SP - 210
EP - 227
JO - European Journal of Industrial Engineering
JF - European Journal of Industrial Engineering
IS - 2
ER -