TITLE

Outsourcing Logistics: Designing Transportation Contracts Between a Manufacturer and a Transporter

AUTHOR(S)
Alp, Osman; Erkip, Nesim K.; G�ll�, Refik
PUB. DATE
February 2003
SOURCE
Transportation Science;Feb2003, Vol. 37 Issue 1, p23
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
In our environment, a manufacturer procures material from a supplier and the supplier brings it in bulk to a warehouse. This material is then consigned to the plant area, where it is utilized as an input of the production process. This consignment process is outsourced by the manufacturer and a transportation company is selected via a bidding mechanism. Primarily, we consider the problem of designing parameters of a given contract for the transportation activity. We define three subproblems within the contract design problem that interact with each other to a certain extent. These subproblems are the vehicle dispatching problem, inventory control problem, and contract value problem. We define these problems, exploit their interactions, and propose solution methods. Moreover, we present an approach to design such transportation contracts, which is based on solving these subproblems in an order for an adequate number of contract parameter combinations and selecting the one that minimizes expected total costs for the manufacturer.
ACCESSION #
9221304

 

Related Articles

  • Building Inventory's Crystal Ball. Page, Paul // Air Cargo World;Oct2005, Vol. 95 Issue 10, pL24 

    This article presents information on inventory management. With supply chains extending these days as fast as the economy is growing and more inventory on the move even as transportation costs are soaring, it's no longer enough for shippers to manage the inventory they have. The big question now...

  • Ready for anything. Kilcarr, Sean // Fleet Owner;May2005, Vol. 100 Issue 5, p30 

    The article reports that National Private Truck Council named Steve Kruk, transportation manager at the Youngstown, Ohio distribution hub for Toys "R' Us and Babies "R" Us, its top Certified Transportation Professional (CTP) graduate for the Class of 2005. According to Kruk, accepting change as...

  • INVENTORY'S NEW DIMENSIONS. Hoffman, William // Traffic World;8/25/2008, Vol. 272 Issue 33, p18 

    The article reports that shippers and service providers have relied on the low-cost transportation to help keep inventories lean. The author states that with low-cost transport becoming a distant memory, shippers are now relying on technology to keep inventory at a minimum. Moreover, an analyst...

  • Optimal Replenishment Policies for Multiechelon Inventory Problems Under Advance Demand Information. Gallego, Guillermo; Ozer, Ozalp // Manufacturing & Service Operations Management;Spring2003, Vol. 5 Issue 2, p157 

    Customers and downstream supply chain partners often place, or can be induced to place, orders in advance of future requirements. We show how to optimally incorporate advance demand information into periodic-review, multiechelon, inventory systems in series. While the state space for series...

  • Logistics Costs On The Rise.  // Food Logistics;6/15/2003, Issue 60, p24 

    Focuses on the findings of a study about the supply chain concerns of consumer packaged goods (CPG) companies. Information on the growth of logistics costs; Details of the responsiveness of CPG supply chain; Discussion on the decrease in inventory levels.

  • The NEED for SPEED. Zeiler, Jeff // Operations & Fulfillment;Apr2004, Vol. 12 Issue 4, p38 

    Provides insights on increasing inventory velocity for an effective supply chain management. Elements of inventory velocity; Importance of inventory accuracy; Necessity for an integrated approach to supply chain.

  • Delivering a Christmas bonus. Kay, Martin // Cabinet Maker;11/19/2004, Issue 5415, p6 

    Discusses the aspects of supply chain management in the furniture sector. Recommended strategies in managing the bulk of orders during pre-Christmas period; Need for companies to deploy an effective strategy for process management.

  • New Solutions For Old Problem. Karolefski, John // Frozen Food Age;Dec2007, Vol. 56 Issue 5, p32 

    This article focuses on new solutions to the problem on retail out-of-stocks (OOS) as outlined in a new study released by Thomas Gruen of the University of Colorado and Daniel Corsten of the IE Business School Madrid. It suggests a three-step approach, which includes creating a product ranking...

  • What's in storage. Martin, Stephen G. // Multichannel Merchant (Penton Media, Inc.);Feb2006, Vol. 2 Issue 2, preceding p5 

    Focuses on several ways to maintain a lean inventory and storage profile in a business operation. Implementation of location velocity codes; Creation of an exception report that highlights the products stored in poor location velocity ranges; Utilization of cubic velocity codes.

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics