An airfreight forwarder's shipment planning: simultaneous decisions on job, route and agent selection
by Yulai Wan, Wai Hung Wong, Lawrence C. Leung, Yer Van Hui
International Journal of Shipping and Transport Logistics (IJSTL), Vol. 2, No. 3, 2010

Abstract: Nowadays, because of the emergence of many online logistics platforms – some of which function as virtual marketplaces – airfreight forwarders are facing an increasing number of shipment requests and many choices of collaborating agents. They are also expected to handle a greater variety of shipments from an increasing number of origins and to an increasing number of destinations. In this paper, we address the three inter-related decisions of job selection, route selection and agent selection in the design of a shipment plan. We formulate this problem as a mixed 0-1 LP, with the objective of maximising profit. Using a numerical example, we analyse the effects of job and route selection and provide insights into various aspects of shipment planning.

Online publication date: Wed, 02-Jun-2010

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