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A Performance Agreement To Align The Operation Of A Loading Dock And A Fleet



    () (Escuela de Administración, Pontificia Universidad Católica de Chile)


    () (Escuela de Administración, Pontificia Universidad Católica de Chile)


    (Graduate School of Industrial Administration, Carnegie Mellon University)


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.

Suggested Citation

  • Patricio Donoso & Marcos Singer & Alan Scheller-Wolf, 1998. "A Performance Agreement To Align The Operation Of A Loading Dock And A Fleet," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 1(2), pages 167-188.
  • Handle: RePEc:pch:abante:v:1:y:1998:i:2:p:167-188

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    References listed on IDEAS

    1. 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.
    2. Patricio Donoso, 1998. "En Busca Del Alineamiento Operacional," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 1(1), pages 33-58.
    3. repec:bla:joares:v:8:y:1970:i:1:p:99-112 is not listed on IDEAS
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    More about this item


    Performance Agreement; Alignment; Fleet; Incentive; Transfer; Chile;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis


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