Abstract

This study investigates a multiowner maximum-flow network problem, which suffers from risky events. Uncertain conditions effect on proper estimation and ignoring them may mislead decision makers by overestimation. A key question is how self-governing owners in the network can cooperate with each other to maintain a reliable flow. Hence, the question is answered by providing a mathematical programming model based on applying the triangular reliability function in the decentralized networks. The proposed method concentrates on multiowner networks which suffer from risky time, cost, and capacity parameters for each network’s arcs. Some cooperative game methods such asτ-value, Shapley, and core center are presented to fairly distribute extra profit of cooperation. A numerical example including sensitivity analysis and the results of comparisons are presented. Indeed, the proposed method provides more reality in decision-making for risky systems, hence leading to significant profits in terms of real cost estimation when compared with unforeseen effects.

Highlights

  • Continuous development of technology in petrochemical industries, automobile manufacturing, water distribution networks, electricity industries, and transportation networks has created complex, competitive, and decentralized environments for suppliers [1]

  • The results showed that the cost allocations obtained through the activity based costing technique were stable and rational

  • To address the problem of allocating the cooperation value to the cooperating owners, we have considered several methods of cooperative game theory

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Summary

Introduction

Continuous development of technology in petrochemical industries, automobile manufacturing, water distribution networks, electricity industries, and transportation networks has created complex, competitive, and decentralized environments for suppliers [1]. This makes distribution companies and transport networks consider their main variables such as capacity, time, and cost as important elements in today’s competitive environments and try to increase their service levels for customers and promote the products according to customers’ demand [2]. Since any failure in the network affects noticeably customer services and causes heavy costs to suppliers, increasing network reliability and network performance is extremely essential. One of the key tools to improve network performance in decentralized networks is game theory and cooperative games that can create optimal strategies for suppliers [3]

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