THE TRAVELING SALESMAN GAME - AN APPLICATION OF COST ALLOCATION IN A GAS AND OIL COMPANY

Citation
S. Engevall et al., THE TRAVELING SALESMAN GAME - AN APPLICATION OF COST ALLOCATION IN A GAS AND OIL COMPANY, Annals of operation research, 82, 1998, pp. 453-471
Citations number
44
Categorie Soggetti
Operatione Research & Management Science","Operatione Research & Management Science
ISSN journal
02545330
Volume
82
Year of publication
1998
Pages
453 - 471
Database
ISI
SICI code
0254-5330(1998)82:<453:TTSG-A>2.0.ZU;2-J
Abstract
In this article, a cost allocation problem that arises in a distributi on planning situation at the Logistics Department at Norsk Hydro Olje AB is studied. A specific tour is considered, for which the total dist ribution cost is to be divided among the customers that are visited. T his problem is formulated as a traveling salesman game, and cc st allo cation methods based on different concepts from cooperative game theor y, such as the nucleolus, the Shapley value and the tau-value, are dis cussed. Additionally, a new concept is introduced: the demand nucleolu s. Computational results for the Norsk Hydro case are presented and di scussed.