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A less-than-truckload carrier collaboration planning problem under dynamic capacities

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  • Hernández, Salvador
  • Peeta, Srinivas
  • Kalafatas, George

Abstract

This paper addresses the deterministic dynamic single carrier collaboration problem for the small- to medium-sized less-than-truckload (LTL) industry. It is formulated as a binary (0–1) multi-commodity minimum cost flow problem and solved using a branch-and-cut algorithm. Its inherent network structure is exploited to generate the lower bounds to the branch-and-cut algorithm using the network simplex method and by relaxing the integrality constraints. Results from numerical experiments indicate inherent trade-offs at the higher degrees of collaboration between waiting for more affordable collaborative capacity and incurring higher holding costs. They also suggest that collaborating LTL carriers experience increased capacity utilization.

Suggested Citation

  • Hernández, Salvador & Peeta, Srinivas & Kalafatas, George, 2011. "A less-than-truckload carrier collaboration planning problem under dynamic capacities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 933-946.
    • Handle: RePEc:eee:transe:v:47:y:2011:i:6:p:933-946
    DOI: 10.1016/j.tre.2011.03.001
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    Cited by:

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    4. Tamvada, Srinivas Subramanya & Mansouri, Bahareh & Hassini, Elkafi & Pribytkov, Theodore, 2021. "An integer programming model and directed Steiner-forest based heuristic for routing less-than-truckload freight," International Journal of Production Economics, Elsevier, vol. 232(C).
    5. Lai, Minghui & Cai, Xiaoqiang & Hu, Qian, 2017. "An iterative auction for carrier collaboration in truckload pickup and delivery," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 60-80.
    6. Guo, Yuhan & Yu, Junyu & Allaoui, Hamid & Choudhary, Alok, 2022. "Lateral collaboration with cost-sharing in sustainable supply chain optimisation: A combinatorial framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    7. Brekalo, Lisa & Albers, Sascha, 2015. "Effective logistics alliance design and management," Working Paper Series 113, University of Cologne, Department of Business Policy and Logistics.
    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.
    9. Agrell, Per J. & Lundin, Johan & Norrman, Andreas, 2017. "Supply Chain Management: Horizontal carrier coordination through cooperative governance structures," International Journal of Production Economics, Elsevier, vol. 194(C), pages 59-72.
    10. Buijs, Paul & Vis, Iris F.A. & Carlo, Héctor J., 2014. "Synchronization in cross-docking networks: A research classification and framework," European Journal of Operational Research, Elsevier, vol. 239(3), pages 593-608.
    11. Gansterer, Margaretha & Hartl, Richard F., 2018. "Collaborative vehicle routing: A survey," European Journal of Operational Research, Elsevier, vol. 268(1), pages 1-12.
    12. Ching-Hui Tang, 2018. "Two-stage stochastic modeling of transportation outsourcing plans for transshipment centers," 4OR, Springer, vol. 16(1), pages 67-94, March.
    13. Jianfeng Zheng & Ziyou Gao & Dong Yang & Zhuo Sun, 2015. "Network Design and Capacity Exchange for Liner Alliances with Fixed and Variable Container Demands," Transportation Science, INFORMS, vol. 49(4), pages 886-899, November.
    14. Wei, Hairui & Lee, Paul Tae-Woo, 2021. "Designing a coordinated horizontal alliance system for China’s inland ports with China railway express platforms along the Silk Road Economic Belt," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
    15. 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.
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