A Theory on Modelling Collaboration in Logistics Networks Combining Network Design Theory and Transaction Costs Economics

This paper focuses on collaboration in logistics and transportation networks, hub network design and transaction costs economics. The authors extend on earlier work on collaboration in logistics on hub network design and on transaction costs. The paper presents a new modeling framework where network design theory and transaction cost economics (TCE) are combined into a comprehensive network design approach that is suitable for dealing with collaboration among shippers. The design approach is based on economic objectives such as minimizing total logistics costs, minimizing the user-costs, and the preferred levels of service set by participants. In addition, the authors incorporate the transaction costs of the involved actors (shippers, carriers, etc.) that influence their decision to participate in a collaborative network, seek an in-house solution, or outsource the activity. The logistics costs are of great importance in this choice. But when a company decides to switch from the current situation to the new network solution, costs are made to make the switch possible. Factors influencing this switch are for example the investments necessary for the alternative that is under consideration, which is referred to as asset specificity.

Language

  • English

Media Info

  • Media Type: Print
  • Features: Figures; Maps; References;
  • Pagination: pp 437-460
  • Monograph Title: Transportation and Traffic Theory 2007

Subject/Index Terms

Filing Info

  • Accession Number: 01076810
  • Record Type: Publication
  • ISBN: 9780080453750
  • Files: TRIS
  • Created Date: Sep 6 2007 10:49AM