The cost savings in transportation can be based on productivity—saving time—and competitive costs of vehicle fleets.
It is assumed that each supplier has strength, with is given as follows: a Supplier A: lower production costs. b Supplier B: larger capacities. c Supplier C: lower transportation cost.
Not captured, the model developed mentions cooperation but does not express it in the form of coalitions.
There are no competitive advantages.
Our contribution
Operational
Response
The savings in transportation costs come from economies of scale (quantity discount) and the valuation of time is subject to priorities.
There are no predefined competitive advantages for the participants, so we leave the value of the contribution in the coalitions to free will so as not to rule out the existence of a subadditive game.