Article ID Journal Published Year Pages File Type
1024066 Transportation Research Part E: Logistics and Transportation Review 2009 13 Pages PDF
Abstract

Price planning simultaneous determines the service demand (with associated prices) and an operational plan to maximize a carrier’s profit. We modeled this integral-constrained concave program in the link formulation and proposed an implicit enumeration embedded with Lagrangian Relaxation upper bounds to determine the optimal prices. Computations on Taiwan’s time-definite less-than-truckload freight market showed that the carrier needs to simultaneously re-evaluate its network capacity while determining prices. The common practice of distance-based pricing that sets price by a base rate over direct shipment distance underestimates operating cost, specifically operating losses for short distance shipments.

Related Topics
Social Sciences and Humanities Business, Management and Accounting Business and International Management
Authors
, , ,