Price planning for time-definite less-than-truckload freight services

Cheng Chang Lin, Dung Ying Lin, Melanie M. Young

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)525-537
Number of pages13
JournalTransportation Research Part E: Logistics and Transportation Review
Volume45
Issue number4
DOIs
Publication statusPublished - 2009 Jul

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Civil and Structural Engineering
  • Transportation

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