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


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

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

    Volume (Year): 45 (2009)
    Issue (Month): 4 (July)
    Pages: 525-537

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    Handle: RePEc:eee:transe:v:45:y:2009:i:4:p:525-537

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    Keywords: Pricing Logistics Hub-and-spoke network Lagrangian Relaxation Implicit enumeration;


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    Cited by:
    1. Campbell, James F., 2013. "A continuous approximation model for time definite many-to-many transportation," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 100-112.
    2. Lin, Cheng-Chang & Lee, Shwu-Chiou, 2010. "The competition game on hub network design," Transportation Research Part B: Methodological, Elsevier, vol. 44(4), pages 618-629, May.


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