Title: Cost benefit sharing-based coordination in logistics networks

Authors: Iwo V. Riha, Bernd Radermacher

Addresses: Fraunhofer Institute of Material Flow and Logistics, Joseph-von-Fraunhofer-Street 2-4, Dortmund 44227, Germany. ' University of Dortmund, Dortmund 44221, Germany

Abstract: We present a comprehensive approach for an incentive system in logistics networks based on network-wide evaluation and reallocation of costs and benefits. We show that alternative allocations of resources based on sharing costs and benefits can give an incentive to the network-partners: Cost Benefit Sharing (CBS). It enables activity dependent reallocation of individual effects that reflect the costs and benefits of each party and systematically considers qualitative factors. A case study of a sourcing process concludes this paper.

Keywords: supply chain collaboration; profit sharing; network management; incentives; logistics networks; supply chain management; SCM; costs; benefits; cost benefit sharing.

DOI: 10.1504/IJITM.2009.023298

International Journal of Information Technology and Management, 2009 Vol.8 No.2, pp.161 - 177

Published online: 17 Feb 2009 *

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