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A less-than-truckload carrier collaboration planning problem under dynamic capacities

Salvador Hernández, Srinivas Peeta and George Kalafatas

Transportation Research Part E: Logistics and Transportation Review, 2011, vol. 47, issue 6, 933-946

Abstract: This paper addresses the deterministic dynamic single carrier collaboration problem for the small- to medium-sized less-than-truckload (LTL) industry. It is formulated as a binary (0–1) multi-commodity minimum cost flow problem and solved using a branch-and-cut algorithm. Its inherent network structure is exploited to generate the lower bounds to the branch-and-cut algorithm using the network simplex method and by relaxing the integrality constraints. Results from numerical experiments indicate inherent trade-offs at the higher degrees of collaboration between waiting for more affordable collaborative capacity and incurring higher holding costs. They also suggest that collaborating LTL carriers experience increased capacity utilization.

Keywords: Collaborative logistics; Freight transportation; Less-than-truckload trucking; Minimum cost flow (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (17)

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DOI: 10.1016/j.tre.2011.03.001

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