Gain sharing in horizontal logistic collaboration : a case study in the fresh fruit and vegetables sector
Faculty of Applied Economics
Antwerp :Universiteit Antwerpen, Faculty of Applied Economics, 2014
Research paper / University of Antwerp, Faculty of Applied Economics ; 2014:004
University of Antwerp
This paper applies several cost allocation methods to a real life case study of fresh produce traders, jointly organising their transportation from the auction to a joint transport platform. The allocation may differ depending on whether the costs are divided on a daily basis or aggregated over a longer period. Moreover, the choice of allocation method determines the specific incentive to grow, to be flexible towards delivery terms that is given towards the collaborating parties. In conclusion, although the literature on game theory offers some support, the coalition has to determine what it perceives as a fair cost allocation.