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Modeling the Value Proposition of the Marketplace vs. Direct Connection

Modeling the Value Proposition of the Marketplace vs. Direct Connection. Ricki G. Ingalls, Ph.D. Loay Sehwail, Ph.D. Candidate Oklahoma State University Center for Engineering Logistics and Distribution.

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Modeling the Value Proposition of the Marketplace vs. Direct Connection

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  1. Modeling the Value Proposition of the Marketplace vs. Direct Connection Ricki G. Ingalls, Ph.D. Loay Sehwail, Ph.D. Candidate Oklahoma State University Center for Engineering Logistics and Distribution In this project, researchers from the School of Industrial Engineering and Management at Oklahoma State University will partner with a sponsor model the value proposition of the B2B online marketplace vs. direct Connection in the petroleum industry.

  2. Summary & Conclusions • The model will give the incremental costs associated with both the marketplace and the direct connect option and the staffing under each alternative. • The petroleum company has least to connect to 200 suppliers in order for the marketplace option to look more economically viable. • The higher the staff cost (Technical and Administrative), the higher the difference between the Marketplace and the Direct Connection total cost.

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