A rule for allocating joint truck-carrier costs

Wayne K. Talley

Transportation Research Part B: Methodological, 1986, vol. 20, issue 1, 49-57

Abstract: This paper presents a rule for allocating joint vehicle costs between fronthaul and backhaul truck trips on a given route. The rule is derived by extending the De Vany and Saving model of a competitive trucking industry operating in uncertain markets. The rule is based upon the existence of inventory costs related to truck trips and demand interdependency between fronthaul and backhaul truck trips. The rule is compared to an earlier joint cost allocation rule developed by Walters.

Date: 1986
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