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

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

doi:10.1016/j.tre.2008.12.004

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

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

Department of Transportation and Communication Management Science

Research output: Contribution to journal › Article › peer-review

14 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 language	English
Pages (from-to)	525-537
Number of pages	13
Journal	Transportation Research Part E: Logistics and Transportation Review
Volume	45
Issue number	4
DOIs	https://doi.org/10.1016/j.tre.2008.12.004
Publication status	Published - 2009 Jul

All Science Journal Classification (ASJC) codes

Business and International Management
Civil and Structural Engineering
Transportation

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10.1016/j.tre.2008.12.004

Cite this

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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.",

author = "Lin, \{Cheng Chang\} and Lin, \{Dung Ying\} and Young, \{Melanie M.\}",

note = "Funding Information: The authors would like to thank two anonymous reviewers for their helpful comments on earlier version of this paper. This research was partially supported by Grant NSC 94-2416-H-006-003 from the National Science Council, Taiwan, ROC.",

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

Abstract

All Science Journal Classification (ASJC) codes

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