Authors: Timothy Madden, Robert A. Russell
Addresses: Industrial Engineering, Purdue University, 315 North Grant Street, West Lafayette, IN 47907 2023, USA. ' Operations Management, The University of Tulsa, 800 South Tucker Drive, Tulsa, OK 74104 3187, USA
Abstract: In this article, we develop methods for evaluating and pricing lanes in the truckload motor freight industry. An optimisation-based simulation approach is used to suggest lane prices in the carrier|s existing network and to examine various strategic scenarios. Two efficient heuristics are developed which provide relatively accurate prices and facilitate implementation. Computational results are reported and the pricing methods are compared to actual carrier prices and prices from a commercial data service.
Keywords: heuristics; lane pricing; optimisation based simulation; revenue management; carrier prices; motor freight industry; trucking.
International Journal of Revenue Management, 2009 Vol.3 No.3, pp.235 - 251
Published online: 21 Jul 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article