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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.

Suggested Citation

  • 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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