Profit Allocation in Fuzzy Cooperative Games in Manufacturing and Logistics Industry
Abstract: Alliance between
manufacturing and logistics industry is a new model of the joint development of
the two industries. A reasonable profit allocation mechanism is the key to
ensure the stable operation of the alliance, as well as to achieve the desired
objectives. Based on uncertainty of alliance expected return as well as the
inherent features of the alliance, this research establishes an improved model
of profit allocation in manufacturing and logistics industry alliance.
Design/methodology/approach: This article studies how to introduce
comprehensive correction factors to improve interval Shapley value method,
which is based on the fact that had been proved by exiting studies. In this
study, interval Shapley value method is first applied to calculate the initial
allocation of fuzzy cooperative games. Next AHP-GEM method and fuzzy
comprehensive evaluation method are incorporated. Based on those results, an
improved model of profit allocation is established. After that, a case study is
demonstrated the practicality and feasibility of the improved model.
Findings: Profit allocation is a complex issue in fuzzy cooperative
games. There’re impacts from partner risk sharing, collaborative effort market
competition, innovative contribution as well as resource investment. All these
factors should be involved in the profit allocation, and different factors have
different weight in importance.
Practical implications: The new model established in the paper is more
scientific and reasonable, and more in line with the actual situation. This
method also provides good incentives to each enterprise to ensure the healthy
and stable development of the alliance.
Originality/value: Based on alliance characteristics, this paper
establishes an indicator system and a new model for profit allocation in
manufacturing and logistics industry alliance, using AHP-GEM method.
Keywords: Manufacturing and
Logistics Industry, Fuzzy Cooperative Games, Improved Interval Shapley Value,
AHP-GEM, Fuzzy Comprehensive Evaluation Method, Profit Allocation
Author: Xiaoyan Wang, Liqi
Jiang, Lei Shu
Journal Code: jptindustrigg140056
