Integration of the cost allocation in the optimization of collaborative bundling

• We present a new model, integrating the cost allocation into the optimization.
• It takes into account individual preferences and costs, making it truly collaborative.
• The model is solved using a matheuristic.
• Compared to “first plan, than divide”, this model increases partner satisfaction.

A model is proposed that integrates a cost allocation method – the Shapley value – into the optimization of the synchronized consolidation of transportation orders. By balancing each partner’s delivery date changes (when synchronizing) against its allocated profit, it ensures that the operational plan is acceptable by all partners. In comparison to a model that first plans and then divides the costs, this model limits expensive delivery date changes and does not systematically favor a company with a slightly higher cost of change.