IDEAS home Printed from https://ideas.repec.org/a/inm/ortrsc/v45y2011i1p1-17.html
   My bibliography  Save this article

Lane-Exchange Mechanisms for Truckload Carrier Collaboration

Author

Listed:
  • Okan Örsan Özener

    (Ozyegin University, 34662 Istanbul, Turkey)

  • Özlem Ergun

    (H. Milton Stewart School of Industrial & Systems Engineering, Georgia Institute of Technology, Atlanta, Georgia 30332)

  • Martin Savelsbergh

    (CSIRO Mathematics, Informatics, and Statistics, North Ryde, NSW 1670, Australia)

Abstract

Because of historically high fuel prices, the trucking industry's operating expenses are higher than ever and thus profit margins are lower than ever. To cut costs, the trucking industry is searching for and exploring new ideas. We investigate the potential of collaborative opportunities in truckload transportation. When carriers serve transportation requests from many shippers, they may be able to reduce their repositioning costs by exchanging one or more of them. We develop optimization models to determine the maximum benefit that can be derived from collaborating. We also develop various exchange mechanisms which differ in terms of information sharing requirements and side payment options that allow carriers to realize some or all of the costs savings opportunities.

Suggested Citation

  • Okan Örsan Özener & Özlem Ergun & Martin Savelsbergh, 2011. "Lane-Exchange Mechanisms for Truckload Carrier Collaboration," Transportation Science, INFORMS, vol. 45(1), pages 1-17, February.
    • Handle: RePEc:inm:ortrsc:v:45:y:2011:i:1:p:1-17
    DOI: 10.1287/trsc.1100.0327
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/trsc.1100.0327
    Download Restriction: no
    File URL: https://libkey.io/10.1287/trsc.1100.0327?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard Li-Yang Chen & Shervin AhmadBeygi & Amy Cohn & Damian R. Beil & Amitabh Sinha, 2009. "Solving Truckload Procurement Auctions Over an Exponential Number of Bundles," Transportation Science, INFORMS, vol. 43(4), pages 493-510, November.
    2. Regan, A C & Song, Jiongjiong, 2003. "Combinatorial Auctions for Transportation Service Procurement: The Carrier Perspective," University of California Transportation Center, Working Papers qt7sq003mj, University of California Transportation Center.
    3. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
    4. Ozlem Ergun & Gultekin Kuyzu & Martin Savelsbergh, 2007. "Reducing Truckload Transportation Costs Through Collaboration," Transportation Science, INFORMS, vol. 41(2), pages 206-221, May.
    5. Richa Agarwal & Özlem Ergun & Lori Houghtalen & Okan Orsan Ozener, 2009. "Collaboration in Cargo Transportation," Springer Optimization and Its Applications, in: Wanpracha Chaovalitwongse & Kevin C. Furman & Panos M. Pardalos (ed.), Optimization and Logistics Challenges in the Enterprise, pages 373-409, Springer.
    6. E. William Moore & Janice M. Warmke & Lonny R. Gorban, 1991. "The Indispensable Role of Management Science in Centralizing Freight Operations at Reynolds Metals Company," Interfaces, INFORMS, vol. 21(1), pages 107-129, February.
    7. M A Krajewska & H Kopfer & G Laporte & S Ropke & G Zaccour, 2008. "Horizontal cooperation among freight carriers: request allocation and profit sharing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 59(11), pages 1483-1491, November.
    8. Okan Örsan Özener & Özlem Ergun, 2008. "Allocating Costs in a Collaborative Transportation Procurement Network," Transportation Science, INFORMS, vol. 42(2), pages 146-165, May.
    9. John O. Ledyard & Mark Olson & David Porter & Joseph A. Swanson & David P. Torma, 2002. "The First Use of a Combined-Value Auction for Transportation Services," Interfaces, INFORMS, vol. 32(5), pages 4-12, October.
    10. Sven de Vries & Rakesh V. Vohra, 2003. "Combinatorial Auctions: A Survey," INFORMS Journal on Computing, INFORMS, vol. 15(3), pages 284-309, August.
    11. Yossi Sheffi, 2004. "Combinatorial Auctions in the Procurement of Transportation Services," Interfaces, INFORMS, vol. 34(4), pages 245-252, August.
    12. Gudmundsson, Sveinn Vidar & Hideshima, Eizo & Oum, Tae Hoon, 2008. "Competition and Collaboration in Air Transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(4), pages 577-579, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gansterer, Margaretha & Hartl, Richard F. & Sörensen, Kenneth, 2020. "Pushing frontiers in auction-based transport collaborations," Omega, Elsevier, vol. 94(C).
    2. 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).
    3. Xu, Su Xiu & Huang, George Q., 2013. "Transportation service procurement in periodic sealed double auctions with stochastic demand and supply," Transportation Research Part B: Methodological, Elsevier, vol. 56(C), pages 136-160.
    4. Mesa-Arango, Rodrigo & Ukkusuri, Satish V., 2013. "Benefits of in-vehicle consolidation in less than truckload freight transportation operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 113-125.
    5. Hammami, Farouk & Rekik, Monia & Coelho, Leandro C., 2021. "Exact and hybrid heuristic methods to solve the combinatorial bid construction problem with stochastic prices in truckload transportation services procurement auctions," Transportation Research Part B: Methodological, Elsevier, vol. 149(C), pages 204-229.
    6. Su Xiu Xu & George Q. Huang & Meng Cheng, 2017. "Truthful, Budget-Balanced Bundle Double Auctions for Carrier Collaboration," Transportation Science, INFORMS, vol. 51(4), pages 1365-1386, November.
    7. Pittawat Ueasangkomsate & Manoj Lohatepanont, 2012. "Bidding Strategies for Carrier in Combinatorial Transportation Auction," International Journal of Business Research and Management (IJBRM), Computer Science Journals (CSC Journals), vol. 3(1), pages 1-17, February.
    8. Dellbrügge, Marius & Brilka, Tim & Kreuz, Felix & Clausen, Uwe, 2022. "Auction design in strategic freight procurement," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 295-325, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    9. Xu, Su Xiu & Huang, George Q., 2014. "Efficient auctions for distributed transportation procurement," Transportation Research Part B: Methodological, Elsevier, vol. 65(C), pages 47-64.
    10. R. Jothi Basu & Nachiappan Subramanian & Angappa Gunasekaran & P. L. K. Palaniappan, 2017. "Influence of non-price and environmental sustainability factors on truckload procurement process," Annals of Operations Research, Springer, vol. 250(2), pages 363-388, March.
    11. Richard Li-Yang Chen & Shervin AhmadBeygi & Amy Cohn & Damian R. Beil & Amitabh Sinha, 2009. "Solving Truckload Procurement Auctions Over an Exponential Number of Bundles," Transportation Science, INFORMS, vol. 43(4), pages 493-510, November.
    12. Hammami, Farouk & Rekik, Monia & Coelho, Leandro C., 2019. "Exact and heuristic solution approaches for the bid construction problem in transportation procurement auctions with a heterogeneous fleet," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 127(C), pages 150-177.
    13. Huang, George Q. & Xu, Su Xiu, 2013. "Truthful multi-unit transportation procurement auctions for logistics e-marketplaces," Transportation Research Part B: Methodological, Elsevier, vol. 47(C), pages 127-148.
    14. Margaretha Gansterer & Richard F. Hartl, 2018. "Centralized bundle generation in auction-based collaborative transportation," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(3), pages 613-635, July.
    15. Lafkihi, Mariam & Pan, Shenle & Ballot, Eric, 2019. "Freight transportation service procurement: A literature review and future research opportunities in omnichannel E-commerce," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 348-365.
    16. Y Guo & A Lim & B Rodrigues & Y Zhu, 2006. "Carrier assignment models in transportation procurement," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(12), pages 1472-1481, December.
    17. Zolfagharinia, Hossein & Haughton, Michael A., 2017. "Operational flexibility in the truckload trucking industry," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 437-460.
    18. Gang Du & Chuanwang Sun & Jinxian Weng, 2016. "Liner Shipping Fleet Deployment with Sustainable Collaborative Transportation," Sustainability, MDPI, vol. 8(2), pages 1-15, February.
    19. Margaretha Gansterer & Richard F. Hartl, 2016. "Request evaluation strategies for carriers in auction-based collaborations," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 38(1), pages 3-23, January.
    20. Nassim Mrabti & Nadia Hamani & Laurent Delahoche, 2022. "A Comprehensive Literature Review on Sustainable Horizontal Collaboration," Sustainability, MDPI, vol. 14(18), pages 1-38, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ortrsc:v:45:y:2011:i:1:p:1-17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.