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The impact of coordination and information on transport procurement

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  • Xavier Brusset

    (Universite Catholique de Louvain)

Abstract

Transport cost is second in importance after production cost in industry. It is the purpose of the present paper to study the impact of information sharing and contractual instruments between a supply chain and its transport suppliers. After reviewing the literature, we propose a model to measure the benefits in terms of transport cost and standard deviation of transport cost. We evaluate three scenarios over one period reiterated for a shipper carrier two-echelon model with a mix of long- term and short-term procurement strategies: perfect information, asymmetric information and private information at one level of the supply chain. We evaluate the transfer in rent between carrier and shipper according to the information known and give some insights on optimal contract parameters.

Suggested Citation

  • Xavier Brusset, 2005. "The impact of coordination and information on transport procurement," Microeconomics 0504007, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpmi:0504007
    Note: Type of Document - pdf; pages: 30. Prepared from Word, figures included, formulas by MathType
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/mic/papers/0504/0504007.pdf
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    References listed on IDEAS

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    Cited by:

    1. Brusset, Xavier & Temme, Nico M., 2007. "Optimizing an objective function under a bivariate probability model," European Journal of Operational Research, Elsevier, vol. 179(2), pages 444-458, June.
    2. Brusset, Xavier, 2009. "Choosing a transport contract over multiple periods," MPRA Paper 18392, University Library of Munich, Germany, revised 09 Jan 2009.

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    More about this item

    Keywords

    Supply chain management; coordination; contracts; information sharing; game theory; mechanisms;
    All these keywords.

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • D2 - Microeconomics - - Production and Organizations
    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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