Measuring and rewarding flexibility in collaborative distribution, including two-partner coalitions

Christine Vanovermeire and Kenneth Sörensen

European Journal of Operational Research, 2014, vol. 239, issue 1, 157-165

Abstract: Horizontal collaboration among shippers is gaining traction as a way to increase logistic efficiency. The total distribution cost of a logistic coalition is generally between 9% and 30% lower than the sum of costs of each partner distributing separately. However, the coalition gain is highly dependent on the flexibility that each partner allows in its delivery terms. Flexible delivery dates, flexible order sizes, order splitting rules, etc., allow the coalition to exploit more opportunities for optimization and create better and cheaper distribution plans.

Keywords: Logistics; Game theory; Shapley value; Nucleolus; Collaboration (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:239:y:2014:i:1:p:157-165

DOI: 10.1016/j.ejor.2014.04.015

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