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Operational transportation planning of freight forwarding companies in horizontal coalitions

Author

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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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    References listed on IDEAS

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    1. Cruijssen, F.C.A.M. & Salomon, M., 2004. "Empirical Study : Order Sharing Between Transportation Companies may Result in Cost Reductions Between 5 to 15 Percent," Discussion Paper 2004-80, Tilburg University, Center for Economic Research.
    2. Côté, Jean-François & Potvin, Jean-Yves, 2009. "A tabu search heuristic for the vehicle routing problem with private fleet and common carrier," European Journal of Operational Research, Elsevier, vol. 198(2), pages 464-469, October.
    3. Bolduc, Marie-Claude & Renaud, Jacques & Boctor, Fayez, 2007. "A heuristic for the routing and carrier selection problem," European Journal of Operational Research, Elsevier, vol. 183(2), pages 926-932, December.
    4. Krajewska, Marta Anna & Kopfer, Herbert, 2009. "Transportation planning in freight forwarding companies: Tabu search algorithm for the integrated operational transportation planning problem," European Journal of Operational Research, Elsevier, vol. 197(2), pages 741-751, September.
    5. Berger, Susanne & Bierwirth, Christian, 2010. "Solutions to the request reassignment problem in collaborative carrier networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 627-638, September.
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. repec:eee:ejores:v:268:y:2018:i:1:p:1-12 is not listed on IDEAS
    4. Li, Junsong & Rong, Gang & Feng, Yiping, 2015. "Request selection and exchange approach for carrier collaboration based on auction of a single request," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 84(C), pages 23-39.
    5. Kimms, A. & Kozeletskyi, I., 2016. "Core-based cost allocation in the cooperative traveling salesman problem," European Journal of Operational Research, Elsevier, vol. 248(3), pages 910-916.
    6. repec:eee:transe:v:107:y:2017:i:c:p:60-80 is not listed on IDEAS
    7. repec:spr:cejnor:v:26:y:2018:i:2:d:10.1007_s10100-017-0503-x is not listed on IDEAS
    8. 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.
    9. Ágota Bányai, 2014. "Cloud Logistics," Advanced Logistic systems, University of Miskolc, Department of Material Handling and Logistics, vol. 8(1), pages 11-16, December.
    10. repec:eee:transe:v:106:y:2017:i:c:p:137-159 is not listed on IDEAS
    11. repec:eee:transe:v:109:y:2018:i:c:p:331-355 is not listed on IDEAS
    12. 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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