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Operational transportation planning of freight forwarding companies in horizontal coalitions

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  • Wang, Xin
  • Kopfer, Herbert
  • Gendreau, Michel

Abstract

In order to improve profitability, freight forwarding companies try to organize their operational transportation planning systematically, considering not only their own fleet but also external resources. Such external resources include vehicles from closely related subcontractors in vertical cooperations, autonomous common carriers on the transportation market, and cooperating partners in horizontal coalitions. In this paper, the transportation planning process of forwarders is studied and the benefit of including external resources is analyzed. By introducing subcontracting, the conventional routing of own vehicles is extended to an integrated operational transportation planning, which simultaneously constructs fulfillment plans with overall lowest costs using the own fleet and subcontractors’ vehicles. This is then combined with planning strategies, which intend to increase the profitability by exchanging requests among members in horizontal coalitions. Computational results show considerable cost reductions using the proposed planning approach.

Suggested Citation

  • Wang, Xin & Kopfer, Herbert & Gendreau, Michel, 2014. "Operational transportation planning of freight forwarding companies in horizontal coalitions," European Journal of Operational Research, Elsevier, vol. 237(3), pages 1133-1141.
    • Handle: RePEc:eee:ejores:v:237:y:2014:i:3:p:1133-1141
    DOI: 10.1016/j.ejor.2014.02.056
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    6. Baṣak Altan & Okan Örsan Özener, 2021. "A Game Theoretical Approach for Improving the Operational Efficiencies of Less-than-truckload Carriers Through Load Exchanges," Networks and Spatial Economics, Springer, vol. 21(3), pages 547-579, September.
    7. Ágota Bányai, 2014. "Cloud Logistics," Advanced Logistic systems, University of Miskolc, Department of Material Handling and Logistics, vol. 8(1), pages 11-16, December.
    8. Lyu, Xiaohui & Chen, Haoxun & Wang, Nengmin & Yang, Zhen, 2019. "A multi-round exchange mechanism for carrier collaboration in less than truckload transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 129(C), pages 38-59.
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    11. Cleophas, Catherine & Cottrill, Caitlin & Ehmke, Jan Fabian & Tierney, Kevin, 2019. "Collaborative urban transportation: Recent advances in theory and practice," European Journal of Operational Research, Elsevier, vol. 273(3), pages 801-816.
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    13. Lorena Reyes-Rubiano & Laura Calvet & Angel A. Juan & Javier Faulin & Lluc Bové, 2020. "A biased-randomized variable neighborhood search for sustainable multi-depot vehicle routing problems," Journal of Heuristics, Springer, vol. 26(3), pages 401-422, June.
    14. Minghui Lai & Weili Xue & Qian Hu, 2019. "An Ascending Auction for Freight Forwarder Collaboration in Capacity Sharing," Transportation Science, INFORMS, vol. 53(4), pages 1175-1195, July.
    15. Ziebuhr, Mario & Kopfer, Herbert, 2016. "Solving an integrated operational transportation planning problem with forwarding limitations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 87(C), pages 149-166.
    16. Li, Yuan & Chen, Haoxun & Prins, Christian, 2016. "Adaptive large neighborhood search for the pickup and delivery problem with time windows, profits, and reserved requests," European Journal of Operational Research, Elsevier, vol. 252(1), pages 27-38.
    17. Wanjie Hu & Jianjun Dong & Bon-gang Hwang & Rui Ren & Zhilong Chen, 2019. "A Scientometrics Review on City Logistics Literature: Research Trends, Advanced Theory and Practice," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
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    19. Gansterer, Margaretha & Hartl, Richard F. & Savelsbergh, Martin, 2020. "The value of information in auction-based carrier collaborations," International Journal of Production Economics, Elsevier, vol. 221(C).
    20. Gansterer, Margaretha & Hartl, Richard F., 2018. "Collaborative vehicle routing: A survey," European Journal of Operational Research, Elsevier, vol. 268(1), pages 1-12.
    21. Liu, Jia-Cai & Sheu, Jiuh-Biing & Li, Deng-Feng & Dai, Yong-Wu, 2021. "Collaborative profit allocation schemes for logistics enterprise coalitions with incomplete information," Omega, Elsevier, vol. 101(C).
    22. Margaretha Gansterer & Richard F. Hartl & Philipp E. H. Salzmann, 2018. "Exact solutions for the collaborative pickup and delivery problem," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(2), pages 357-371, June.
    23. Gahm, Christian & Brabänder, Christian & Tuma, Axel, 2017. "Vehicle routing with private fleet, multiple common carriers offering volume discounts, and rental options," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 97(C), pages 192-216.
    24. Lai, Minghui & Cai, Xiaoqiang & Li, Xiang, 2017. "Mechanism design for collaborative production-distribution planning with shipment consolidation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 137-159.
    25. Ben Jouida, Sihem & Krichen, Saoussen & Klibi, Walid, 2017. "Coalition-formation problem for sourcing contract design in supply networks," European Journal of Operational Research, Elsevier, vol. 257(2), pages 539-558.

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