Cost to Serve

Authors:
Douglas Tjokrosetio, Matias Opazo
MIT Supply Chain Management Program

59



Summary:
The project concentrates on equitable freight cost allocation for clients receiving multiple liquid chemical products via multi-stop routes. Utilizing the Shapley Method ensures a fair distribution of delivery costs among clients on each route. This tool significantly aids the company in precisely assessing the effect of each customer on profitability, which in turn enhances the company’s pricing policy.


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