Gain sharing in horizontal logistic collaboration. A case study in the fresh fruit and vegetables sector

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 lo...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors DEFRYN, Christof, VANOVERMEIRE, Christine, SÖRENSEN, Kenneth, VAN BREEDAM, Alex, VANNIEUWENHUYSE, Bart, VERSTREPEN, Sven
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2014
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Case studies
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Summary: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.