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      Transportation pricing of a truckload carrier

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      Author(s)
      Toptal, A.
      Bingöl, S. O.
      Date
      2011
      Source Title
      European Journal of Operational Research
      Print ISSN
      0377-2217
      Electronic ISSN
      1872-6860
      Publisher
      Elsevier
      Volume
      214
      Issue
      3
      Pages
      559 - 567
      Language
      English
      Type
      Article
      Item Usage Stats
      130
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      285
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      Abstract
      Freight transportation is a major component of logistical operations. Due to the increase in global trade, fierce competition among shippers and raising concerns about energy, companies are putting more emphasis on effective management and usage of transportation services. This paper studies the transportation pricing problem of a truckload carrier in a setting that consists of a retailer, a truckload carrier and a less than truckload carrier. In this setting, the truckload carrier makes his/her pricing decision based on previous knowledge on the less than truckload carrier's price schedule and the retailer's ordering behavior. The retailer then makes a determination of his/her order quantity through an integrated model that explicitly considers the transportation alternatives, and the related costs (i.e., bimodal transportation costs) and capacities. In the paper, the retailer's replenishment problem and the truckload carrier's pricing problem are modeled and solved based on a detailed analysis. Numerical evidence shows that the truckload carrier may increase his/her gainings significantly through better pricing and there is further opportunity of savings if the truckload carrier and the retailer coordinate their decisions.
      Keywords
      Transportation pricing
      Supply chain management
      Truckload carrier
      Less than truckload carrier
      Integrated inventory/transportation
      Permalink
      http://hdl.handle.net/11693/21731
      Published Version (Please cite this version)
      http://dx.doi.org/10.1016/j.ejor.2011.05.005
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