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Demand clustering in freight logistics networks

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  • Mesa-Arango, Rodrigo
  • Ukkusuri, Satish V.

Abstract

Demand clustering in freight logistics networks is an important strategic decision for carriers. It is used to incorporate new business to their networks, detecting potential economies, optimizing their operation, and developing revenue management strategies. A specific example of demand clustering is truckload combinatorial auctions where carriers bundle lanes of demand and price them taking advantage of economies of scope. This research presents a novel approach to cluster lanes of demand. Community detection is used to cluster the emergent network finding profitable collections of demand. Numerical results show the advantages of this method.

Suggested Citation

  • Mesa-Arango, Rodrigo & Ukkusuri, Satish V., 2015. "Demand clustering in freight logistics networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 36-51.
    • Handle: RePEc:eee:transe:v:81:y:2015:i:c:p:36-51
    DOI: 10.1016/j.tre.2015.06.002
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