Improved weighted shapley value model for the fourth party logistics supply chain coalition

Abstract

How to make the individual get the reasonable and practical profit among the fourth party logistics supply chain coalition system is still a question for further study. Considering the characteristics of the fourth party logistics supply chain coalition, this paper combines Shapley Value with Distribution according to Contribution, two methods in the application, and then adjusts the profit allocated to each member reasonably based on the actual coalition situation named improved weighted Shapley Value model. In this paper, we first analyze the fourth party logistics supply chain coalition profit allocation models, the classical Shapley value method. Then, we analyze the weight of individual enterprise in the coalition by the analytic hierarchy process. To each enterprise, the weight is determined by the investment risks, information divulging risks, and failure risks. Finally, the numerical study shows that the profit allocation method improved weighted Shapley value model is relatively rational and practical. Thus, the proposed combined model is a useful profit allocation mechanism for the fourth party logistics supply chain coalition that the contribution and risks are fully considered. © 2013 Na Xu.