Browsing by Author "Savelsbergh, M."

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    Allocating cost of service to customers in inventory routing
    (Informs, 2013) Özener, Okan Örsan; Ergun, Ö.; Savelsbergh, M.; Industrial Engineering; ÖZENER, Okan Örsan
    Vendor-managed inventory VMI replenishment is a collaboration between a supplier and its customers, where the supplier is responsible for managing the customers' inventory levels. In the VMI setting we consider, the supplier exploits synergies between customers, e.g., their locations, usage rates, and storage capacities, to reduce distribution costs. Due to the intricate interactions between customers, calculating a fair cost-to-serve for each customer is a daunting task. However, cost-to-serve information is useful when marketing to new customers or when revisiting routing and delivery quantity decisions. We design mechanisms for this cost allocation problem and determine their characteristics both analytically and computationally.
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    Lane-exchange mechanisms for truckload carrier collaboration
    (Informs, 2011-02) Özener, Okan Örsan; Ergun, Ö.; Savelsbergh, M.; Industrial Engineering; ÖZENER, Okan Örsan
    Because of historically high fuel prices, the trucking industry's operating expenses are higher than ever and thus profit margins are lower than ever. To cut costs, the trucking industry is searching for and exploring new ideas. We investigate the potential of collaborative opportunities in truckload transportation. When carriers serve transportation requests from many shippers, they may be able to reduce their repositioning costs by exchanging one or more of them. We develop optimization models to determine the maximum benefit that can be derived from collaborating. We also develop various exchange mechanisms which differ in terms of information sharing requirements and side payment options that allow carriers to realize some or all of the costs savings opportunities.