The Transporter's Impact on Channel

Coordination and Contractual Agreements

 

SCALE Dissertation Support Award Finalist

 

Fatih Mutlu

Advisor: Sıla Çetinkaya

Industrial Engineering Department

Texas A&M University

College Station, TX 77843-3131

 

We study the impact of integrating the transporter in supply chain coordination using two-stage stylistic models. We analyze single period and infinite horizon problems with price sensitive deterministic demand and price independent stochastic demand. We study the corresponding centralized models for a single-supplier, -buyer, and –transporter setting. We also investigate the counterpart decentralized models in cooperative and non-cooperative game theoretic settings. We test the performance of widely used coordination mechanisms, i.e. freight discounts, and show that they are not sufficient to coordinate the system, and, hence, we develop other coordination mechanisms, i.e. revenue sharing contracts, and investigate whether they can coordinate the system.

 

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