Flow Pooling as Lateral Collaboration

The purpose of this paper is to analyse the Multi User Concept (MUC) approach, a combination of vertical and horizontal collaboration (lateral collaboration) across different actors in a supply chain. To analyse this concept a quantitative case study using modelling and simulation was made based on actual data from several companies in an automotive supply chain. On a supply chain level, the model shows significant advantages for the MUC approach in terms of cost and service levels. However for some of the actors, there is only very limited individual improvement. Hence they have no incentive to join with the other companies, meaning that the feasibility of the cooperation is placed in danger.