Pricing in Dynamic Vehicle Routing Problems
Field | Value | Language |
dc.contributor.author | Figliozzi, Miguel Andres | |
dc.contributor.author | Mahmassani, Hani S | |
dc.contributor.author | Jaillet, Patrick | |
dc.date.accessioned | 2018-11-22 | |
dc.date.available | 2018-11-22 | |
dc.date.issued | 2006-04-01 | |
dc.identifier.issn | 1832-570X | |
dc.identifier.uri | http://hdl.handle.net/2123/19392 | |
dc.description.abstract | The principal focus of this paper is to study carrier pricing decisions for a new type of vehicle routing problems defined in a competitive and dynamic environment. This paper introduces the Vehicle Routing Problem in a Competitive Environment (VRPCE), as an extension of the Traveling Salesman Problem with Profits (TSPP) to a dynamic competitive auction environment. In the VRPCE, the carrier must estimate the incremental cost of servicing new service requests as they arrive dynamically. The paper presents a rigorous and precise treatment of the sequential pricing and costing problem that a carrier faces in such an environment. The sequential pricing problem presented here is an intrinsic feature of a sequential auction problem. In addition to introducing the formulation of this class of problems and discussing the main sources of difficulty in devising a solution, a simple example is constructed to show that carriers’ prices under first price auction payment rules do not necessarily reflect the cost of servicing transportation requests. An approximate solution approach with a finite look-ahead horizon is presented and illustrated through numerical experiments, in competition with a static approach with no look-ahead. | en_AU |
dc.relation.ispartofseries | ITLS-WP-06-10 | en_AU |
dc.subject | Vehicle routing problem, freight transportation, carrier management strategies, carrier profitability, information technology, bidding strategies, electronic commerce, auctions. | en_AU |
dc.title | Pricing in Dynamic Vehicle Routing Problems | en_AU |
dc.type | Working Paper | en_AU |
dc.contributor.department | ITLS | en_AU |
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