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Medium-Term Pricing and Operations Planning in Intermodal Transportation

Author

Listed:
  • Li Li

    (Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

  • Sridhar Tayur

    (Graduate School of Industrial Administration, Carnegie Mellon University, Pittsburgh, Pennsylvania 15213)

Abstract

Motivated by a real application that requires effective medium-term planning in intermodal transportation, we develop a mathematical programming model that jointly considers pricing and operations planning. Building on available work from marketing and transportation literature, we develop a new method for considering pricing, as well as develop distinctly different operations submodels that are appropriate for this context. We solve the resulting nonlinear optimization problem (with continuous and 0-1 variables) to optimality through a decomposition that exploits the structure of subproblems. Computational testing on industrial-sized problems shows that our algorithm is very quick, allowing for effective scenario testing and “what-if” analysis.

Suggested Citation

  • Li Li & Sridhar Tayur, 2005. "Medium-Term Pricing and Operations Planning in Intermodal Transportation," Transportation Science, INFORMS, vol. 39(1), pages 73-86, February.
    • Handle: RePEc:inm:ortrsc:v:39:y:2005:i:1:p:73-86
    DOI: 10.1287/trsc.1030.0058
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    References listed on IDEAS

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    2. Long Gao & Jim (Junmin) Shi & Michael F. Gorman & Ting Luo, 2020. "Business Analytics for Intermodal Capacity Management," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 310-329, March.
    3. Christine Tawfik & Sabine Limbourg, 2018. "Pricing Problems in Intermodal Freight Transport: Research Overview and Prospects," Sustainability, MDPI, vol. 10(9), pages 1-22, September.
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    9. Wang, Zhenjie & Zhang, Dezhi & Tavasszy, Lóránt & Fazi, Stefano, 2023. "Integrated multimodal freight service network design and pricing with a competing service integrator and heterogeneous shipper classes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).

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