Using Modified Shapley Value to Determine Revenue Allocation within Supply Chain

This paper introduces the shapley value algorithm and applies it to the revenue allocation among supply chain coalition. Some good qualities and shortcomings of shapley value method are also analyzed in the paper. A modified method considering risk and investment coefficiece is presented to improve the effects in the revenue allocation, which is helpful to distribute reasonable profit among members, and ensures the alliance' s persistency and stability in supply chain cooperation.