Scheduling railway freight delivery appointments using a bid price approach
This paper proposes a method for establishing aggressive but achievable delivery appointment times for railroad shipments, taking into account individual customer needs and forecasted available train capacity. The concept of scheduling appointment times is directly patterned after current motor carrier industry practice, so that customers can plan for rail or truck deliveries in the same way. A shipment routing problem is decomposed into a deterministic "dynamic car scheduling" (DCS) process for shipments already accepted and a stochastic "train segment pricing" (TSP) process for forecasting future demands which have not yet called in and for which delivery appointments have yet to be scheduled. Both are formulated as multi-commodity network flow (MCNF) problems, where each shipment is treated as a separate commodity. Gain coefficients represent recapture probabilities that a specific customer will accept a carrier's service offer. A comparison with a widely used revenue management formulation is given. A Lagrangian heuristic for obtaining a primal solution is also described. The problem is solved within a 1% gap using the subgradient algorithm.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 36 (2002)
Issue (Month): 2 (February)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Guillermo Gallego & Garrett van Ryzin, 1994. "Optimal Dynamic Pricing of Inventories with Stochastic Demand over Finite Horizons," Management Science, INFORMS, vol. 40(8), pages 999-1020, August.
- Marshall L. Fisher, 1981. "The Lagrangian Relaxation Method for Solving Integer Programming Problems," Management Science, INFORMS, vol. 27(1), pages 1-18, January.
- Borsch-Supan, Axel, 1990. "On the compatibility of nested logit models with utility maximization," Journal of Econometrics, Elsevier, vol. 43(3), pages 373-388, March.
- Manrai, Ajay K., 1995. "Mathematical models of brand choice behavior," European Journal of Operational Research, Elsevier, vol. 82(1), pages 1-17, April.
- Anderson, Simon Peter & de Palma, Andre & Thisse, Jacques-Francois, 1988.
"A Representative Consumer Theory of the Logit Model,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 461-466, August.
- ANDERSON, Simon & de PALMA, André & THISSE, Jacques-François, "undated". "A representative consumer theory of the logit model," CORE Discussion Papers RP 805, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- ANDERSON, S. & de PALMA, A. & THISSE, J.-F., 1986. "A representative consumer theory of the logit model," CORE Discussion Papers 1986043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Powell, Warren B., 1987. "An operational planning model for the dynamic vehicle allocation problem with uncertain demands," Transportation Research Part B: Methodological, Elsevier, vol. 21(3), pages 217-232, June.
- Jeff Kennington & Mohamed Shalaby, 1977. "An Effective Subgradient Procedure for Minimal Cost Multicommodity Flow Problems," Management Science, INFORMS, vol. 23(9), pages 994-1004, May.
- Jason D. Papastavrou & Srikanth Rajagopalan & Anton J. Kleywegt, 1996. "The Dynamic and Stochastic Knapsack Problem with Deadlines," Management Science, INFORMS, vol. 42(12), pages 1706-1718, December.
- Fukushima, Masao, 1984. "On the dual approach to the traffic assignment problem," Transportation Research Part B: Methodological, Elsevier, vol. 18(3), pages 235-245, June.
- McBride, Richard D., 1985. "Solving embedded generalized network problems," European Journal of Operational Research, Elsevier, vol. 21(1), pages 82-92, July.
- Ali, Agha Iqbal & Kennington, Jeff & Shetty, Bala, 1988. "The equal flow problem," European Journal of Operational Research, Elsevier, vol. 36(1), pages 107-115, July.
- Koning, Ruud H. & Ridder, Geert, 1994. "On the compatibility of nested logit models with utility maximization : A comment," Journal of Econometrics, Elsevier, vol. 63(2), pages 389-396, August.
- Kwon, Oh Kyoung & Martland, Carl D. & Sussman, Joseph M., 1998. "Routing and scheduling temporal and heterogeneous freight car traffic on rail networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 34(2), pages 101-115, June.
- Nozick, Linda K. & Morlok, Edward K., 1997. "A model for medium-term operations planning in an intermodal rail-truck service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(2), pages 91-107, March. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:36:y:2002:i:2:p:145-165. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.