Temporal Collaboration In Delivery Service Considering Defective Rate

In recent years, the COVID-19 problem has accelerated the growth of e-commerce to new enterprises, product categories, and customer segments. The e-commerce industry’s rapid expansion has resulted in an increase in parcel quantities. As a result of this growth, delivery companies are becoming more competitive, capturing market growth. This study proposes a temporal-collaboration model to overcome the intense competition. Moreover, there are cases of unforeseen accidents during the delivery processes such as loss, physical damage, or delay of delivery due to retainment of shipment in customs, which in turn may quickly reflect the delivery company reputation and reliability of its services. In order to maximize profit for each allied company, a mathematical model for network design is developed. Based on a co-operative game theory, a fair allocation method of coalition profit is also proposed. An example problem is used to demonstrate the applicability of the collaboration model.