Flexibility in transportation procurement : a real options approach
Name
57350742-MIT.pdf
Description
Full printable version
Size
12.84 MB
Format
Adobe PDF
Checksum (MD5)
0a9d1ddb3c6426e6bada92913e9ea344
Author(s)
Zhelev, Georgi Zhelev, 1975-
Advisor(s)
Christopher Caplice.
Date Issued
2004
Publisher
Massachusetts Institute of Technology
Abstract
Shippers who use for-hire carriers need a careful estimation of their need for trucking capacity in order to be able to haul products in a timely and cost-effective manner. This thesis outlines a flexible approach to transportation procurement. According to the proposed method, a shipper makes a firm commitment to a carrier to use a guaranteed level of capacity and agrees to pay a penalty for any unutilized equipment. In exchange, the carrier provides the shipper with an option to fulfill the shipper's request for additional capacity above the guaranteed level and up to a predermined limit if needed. The analysis focuses on actual data from a shipper and explores a "what if' scenario--whether it would have been possible to achieve savings and generate value by having such a flexible contract.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004.
"June 2004."
Includes bibliographical references (leaves 53-54).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
Terms of Use
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