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Vertical and Horizontal Collaboration in Inventory and Transportation

In: Computational Management Science

Author

Listed:
  • Benedikt Vos

    (Ghent University)

  • Birger Raa

    (Ghent University)

Abstract

In this paper, two forms of collaboration in a decentralised distribution network are studied, namely vertical and horizontal collaboration through volumes and geographical area. Vertical collaboration is introduced through Vendor Managed Inventory to coordinate inventory and distribution better and create higher cost-efficiency. Shippers collaborate horizontally by sharing orders and replenishing retailers through jointly designed routes to increase distribution efficiency. Once the cost savings are calculated, cooperative game theory is used to fairly allocate them to the coalition partners and guarantee sustainability of the collaboration. Given the complexity of the problem, focus is currently on small datasets.

Suggested Citation

  • Benedikt Vos & Birger Raa, 2016. "Vertical and Horizontal Collaboration in Inventory and Transportation," Lecture Notes in Economics and Mathematical Systems, in: Raquel J. Fonseca & Gerhard-Wilhelm Weber & João Telhada (ed.), Computational Management Science, edition 1, pages 99-104, Springer.
    • Handle: RePEc:spr:lnechp:978-3-319-20430-7_13
    DOI: 10.1007/978-3-319-20430-7_13
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    Cited by:

    1. Heydari, Jafar & Momeni, Behnam, 2021. "Retailers’ coalition and quantity discounts under demand uncertainty," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).

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