Mixing contract-based and on-demand sourcing of transportation services for improved supply chain performance under supply uncertainties

With increasing demand volatility, companies must develop flexibility at multiple supply-chain stages, including in transportation. One method for doing this is combining long-term contract carriers with on-demand sourcing of transportation capacity from the spot market. In line growth online riding services, trucking services now emerging. This study investigates mixing contract-based and currently uncertain supply. We describe uncertainty stemming market’s rejection rate, variability terms truck availability response times, prices offered on The situation modelled using a discrete-event simulation approach to capture complexity system. Our experiment indicates that greater reliance market could result better fill rate but lower delivery punctuality higher costs. decision mix should consider factors supply side, (i) carriers, (ii) waiting times market, (iii) price