METRANS UTC

An Online Cost Allocation Model for Horizontal Supply Chains

Project Number

16-02

Project Summary

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.

Project Status

Complete

Year

2016

Topic Area

Integrated Freight and Passenger Systems

P.I. Name & Address

Assistant Professor, Department of Industrial and Systems Engineering; Daniel J. Epstein Department of Industrial and Systems Engineering
University of Southern California
3650 McClintock Ave.
Olin Hall of Engineering (OHE) 310F
Los Angeles, CA 90089-0193
United States
jcarlsso@usc.edu

Co-P.I.

Professor, Daniel J. Epstein Department of Industrial and Systems Engineering; USC Viterbi School of Engineering
University of Southern California
3715 McClintock Ave.
Ethel Percy Andrus Gerontology Center (GER) 206A
Los Angeles, CA 90089-0193
United States
maged@rcf.usc.edu

Funding source: California Department of Transportation (Caltrans)

Funding amount: $100,000

Start date: 3/2/2017

End date: 6/30/2018