IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01414135.html
   My bibliography  Save this paper

Dynamic pricing model for less-than-truckload carriers in the Physical Internet

Author

Listed:
  • Bin Qiao

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Shenle Pan

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Eric Ballot

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper investigates a less-than-truckload dynamic pricing decision-making problem in the context of the Physical Internet (PI). The PI can be seen as the interconnection of logistics networks via open PI-hubs. In terms of transport, PI-hubs can be considered as spot freight markets where LTL requests with different volumes/destinations continuously arrive over time and only remain for short periods. Carriers can bid for these requests using short-term contracts. In a dynamic, stochastic environment like this, a major concern for carriers is how to propose prices for requests to maximise their revenue. The latter is determined by the proposed price and the probability of winning the request at that price. This paper proposes a dynamic pricing model based on an auction mechanism to optimise the carrier's bid price. An experimental study is conducted in which two pricing strategies are proposed and assessed: a unique bidding price (one unique price for all requests at an auction), and a variable bidding price (price for each request at an auction). Three influencing factors are also investigated: quantity of requests, carrier capacity, and cost. The experimental results provide insightful conclusions and useful guidelines for carriers regarding pricing decisions in PI-hubs.

Suggested Citation

  • Bin Qiao & Shenle Pan & Eric Ballot, 2019. "Dynamic pricing model for less-than-truckload carriers in the Physical Internet," Post-Print hal-01414135, HAL.
    • Handle: RePEc:hal:journl:hal-01414135
    DOI: 10.1007/s10845-016-1289-8
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Chaojie & Thompson, Russell G. & Foliente, Greg & Kong, Xiang T.R., 2021. "An auction-enabled collaborative routing mechanism for omnichannel on-demand logistics through transshipment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    2. 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.
    3. Feyza Gürbüz & İkbal Eski & Berrin Denizhan & Cihan Dağlı, 2019. "Prediction of damage parameters of a 3PL company via data mining and neural networks," Journal of Intelligent Manufacturing, Springer, vol. 30(3), pages 1437-1449, March.

    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:hal:journl:hal-01414135. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.