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Quantity discount pricing for rail transport in a dry port system

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  • Qiu, Xuan
  • Lee, Chung-Yee

Abstract

A dry port is an inland intermodal terminal connected to a seaport via railways. This paper studies a rail transportation pricing problem with quantity discounts in a dry port system consisting of one dry port and multiple shippers. This problem is modeled as a Stackelberg game where the dry port is the leader and the shippers are followers. An all-units quantity discount pricing scheme with a single breakpoint is adopted. Optimal properties are analyzed and the global optimal solution is derived. Numerical studies are conducted to examine the effectiveness of quantity discount pricing under various scenarios.

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  • Qiu, Xuan & Lee, Chung-Yee, 2019. "Quantity discount pricing for rail transport in a dry port system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 563-580.
    • Handle: RePEc:eee:transe:v:122:y:2019:i:c:p:563-580
    DOI: 10.1016/j.tre.2019.01.004
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