Author： Engevall S. Göthe-Lundgren M. Värbrand P.
Publisher： Springer Publishing Company
ISSN： 0254-5330
Source： Annals of Operations Research, Vol.82, Iss.1, 1998-01, pp. : 453-472
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Abstract
In this article, a cost allocation problem that arises in a distribution planning situation atthe Logistics Department at Norsk Hydro Olje AB is studied. A specific tour is considered,for which the total distribution cost is to be divided among the customers that are visited.This problem is formulated as a traveling salesman game, and cost allocation methods basedon different concepts from cooperative game theory, such as the nucleolus, the Shapleyvalue and the t-value, are discussed. Additionally, a new concept is introduced: the demandnucleolus. Computational results for the Norsk Hydro case are presented and discussed.
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