Logistics Horizontal Collaboration. An Agent-Based Simulation Approach to
      Model Collaboration Dynamics
Creators: name: Zhu, Jie
Publisher: name: Lancaster University
Year: 2017
Subjects: Logistics
Horizontal Collaboration
Supply Chain Management
Agent-Based Model
Simulation

description: Underutilized capacity, long shipping lead time, high cost and lack of
      sufficient scale are examples of logistics inefficiencies that have
      troubled many supply chain operations. Logistics horizontal collaboration
      (LHC) is believed to be an innovative approach to tackle the increasing
      logistics challenges. This kind of collaborative logistics is quickly
      gaining momentum in practice but relevant contributions in literature are
      scarce. So far it remains unclear how LHC could be structured and operated
      given the limited understanding of the various characteristics and forms
      of LHC between companies. Furthermore, the explicit impact of LHC on the
      participating partners, as well as on the supply chain system is
      understudied. Very few studies have explored the process of collaboration
      and how it links to performance behaviours. 
      
      
      Case studies and Agent-Based Simulation are employed in this thesis to
      study the research gaps identified above. Case studies are initially
      conducted to examine the key elements which can support the design of LHC,
      and to make a classification of models for collaboration. These are
      followed by Agent-Based Simulation to model a typical collaboration
      process and work out what benefits would emerge if participating in
      horizontal collaboration and how the collaboration can produce the impacts
      on the supply chain operations for individuals and the system as a whole. 
      
      
      The case studies suggest that “collaboration structures”, “collaboration
      objectives”, “collaboration intensity”, and “collaboration modes” are the
      four key elements critical to the design of a LHC project. Each element
      represents an important aspect of the collaboration and exhibits different
      characteristics and forms. Based on these key elements, several typologies
      are derived which together provide a comprehensive view to explain the
      different types of LHC in practice. The simulation modelling demonstrates
      that LHC can significantly benefit the logistics efficiency in terms of
      capacity utilization and customer service in the sense of order fill-rate,
      and such beneficial effects are consistently observed in different supply
      chain environments. In particular, LHC can produce better logistics
      performance in a relationship-based supply chain network where downstream
      customers can support upstream shippers with more stable and predictable
      demand. On the other hand, information sharing in the collaboration, for
      the most part, does not facilitate the higher collaboration gains for
      partners. Specifically, sharing either the demand or supply information in
      the horizontal collaboration is not helpful in increasing collaboration
      gains. Hence there is a difference for the value of information sharing in
      the context of horizontal collaboration as opposed to vertical
      collaboration, the latter of which is often justified as providing more
      beneficial gains. The research findings provide insights for practitioners
      and scholars about how to develop a type of collaboration project or
      study, as well as enabling a better understanding of the dynamic
      collaboration effects.