A Performance Agreement To Align The Operation Of A Loading Dock And A Fleet
This article examines a company whose distribution operation is carried out by a loading Dock and a Fleet of trucks. For a number of reasons, each department optimizes its operation locally, with no concern for the operational alignment of the overall system. To resolve this problem, a contract is proposed that will provide an incentive for improved operations, particularly at the loading Dock. The contract specifies a payment from the Fleet to the loading Dock calculated on the basis of a reduction in Fleet size made possible by improvements in the Dock operations. This methodology is applied to a mass consumption product distributing company in Santiago, Chile. Significant savings opportunities result, thanks to operational alignment.
Volume (Year): 1 (1998)
Issue (Month): 2 ()
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- Yafeng Du & Randolph Hall, 1997. "Fleet Sizing and Empty Equipment Redistribution for Center-Terminal Transportation Networks," Management Science, INFORMS, vol. 43(2), pages 145-157, February.
- Patricio Donoso, 1998. "En Busca Del Alineamiento Operacional," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 1(1), pages 33-58.
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