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Research on the Cost Allocation of Joint Distribution of Agricultural Products based on Game Theory

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Author(s): Jing Wang | Qi Jia

Journal: Advance Journal of Food Science and Technology
ISSN 2042-4868

Volume: 5;
Issue: 8;
Start page: 1105;
Date: 2013;
Original page

Keywords: Agricultural products | cost allocation | game theory | joint distribution

ABSTRACT
Joint distribution in the process of circulation of agricultural products can reduce the cost of agricultural products circulation, improves the efficiency of logistics distribution, but for how to solve the problem of cost allocation has always been the major obstacle to the development of this model. The joint distribution model of agricultural products is presented in this study and then considers the problem of cost reduction in joint distribution of two agricultural products retailers. The amount of cost reduction is regarded as the income of distribution, which is distributed effectively by using game theory and resolve the problem of Cost allocation in joint distribution. Through the analysis of an example the joint distribution model can largely reduce the cost of distribution for agricultural products. Finally, through the distribution cost allocation verified the effectiveness and feasibility of this method of cost allocation.
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