Ride service outsourcing for profit maximization

Yihua Li, Xiubin Wang and Teresa M. Adams

Transportation Research Part E: Logistics and Transportation Review, 2009, vol. 45, issue 1, 138-148

Abstract: Transportation service subcontracting is becoming an effective means of business for many leading carriers to maintain their market dominance and profitability. This research is based on an outsourcing practice in one of the few largest limousine fleet companies in the US, whose (mostly advance) demand for services often exceeds its capacity. We develop a model for ride service outsourcing. A column generation method is proposed. The outsourcing decision is made simultaneously with pre-scheduling of in-house ride services as well as staffing. Test with services data indicates that the developed method dramatically improves the carrier's outsourcing decision.

Keywords: Transportation; service; outsourcing; Fleet; assignment; Driver; scheduling; Column; generation (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (3)

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