Profit Allocation Problems in Supply Chain by Improved Shapley Value
Jia Li, Ji Ning
Abstract
Jia Li, Ji Ning
Abstract
One of the key issues affecting the development of the supply chain is the profit allocation. Profit allocation refers to the distribution of the total profit among the members of the supply chain. This paper, based on the classic Shapley value method - taking into account investment, risk and other factors - combines the revenue risk method and Shapley value creatively, and proposes an improved Shapley value method. Finally, the validity of the application is verified by an example.
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One of the key issues affecting the development of the supply chain is the profit allocation. Profit allocation refers to the distribution of the total profit among the members of the supply chain. This paper, based on the classic Shapley value method - taking into account investment, risk and other factors - combines the revenue risk method and Shapley value creatively, and proposes an improved Shapley value method. Finally, the validity of the application is verified by an example.
Key concepts: Shapley value, Profit (economics), Supply chain, Microeconomics, Revenue, Computer science, Economics, Game theory