An Online Cost Allocation Model for Horizontal Supply Chains
Objective: This proposal addresses the cost allocation problem in a real-time cost sharing transportation system, which results from horizontal cooperation among multiple suppliers. The research will develop an online cost-sharing mechanism by adapting existing mechanisms for use in the dynamic environment. In this problem, new customers become known in real time and the optimal total cost of service can only be approximated. The resulting model will show how horizontal cooperation could reduce the total transportation cost, and potentially lower the cost barrier for new businesses to enter the market.
P.I. Name & Address
Funding source: California Department of Transportation (Caltrans)
Funding amount: $100,000
Start date: 3/2/2017
End date: 6/30/2018