The importance of considering non-linear layover and delay costs for local truckers

Hossein Zolfagharinia and Michael Haughton

Transportation Research Part E: Logistics and Transportation Review, 2018, vol. 109, issue C, 331-355

Abstract: Adopting a time-discretization method, we propose an iterative algorithm that solves a series of integer programming models to effectively handle non-linear costs in the trucking industry. The numerical analysis illustrates the importance of acknowledging nonlinear costs in improving the operational performance of local carriers specifically under the following conditions: (a) limited advance load information, (b) high load density, and (c) high traffic imbalance. This improvement can reach an average of 8.5% when subcontracting cost is high. Furthermore, we statistically analyze the impact of various factors (e.g., traffic imbalance) on the performance of a carrier with nonlinear costs.

Keywords: Mixed integer non-linear programming; Integer programming; Collaborative transportation; Truckload transportation; Time window discretization; Traffic imbalance (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:109:y:2018:i:c:p:331-355

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DOI: 10.1016/j.tre.2017.10.007

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