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Preliminary Insights into Optimal Pricing and Space Allocation at Intermodal Terminals with Elastic Arrivals and Capacity Constraint

Author

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  • José Holguín-Veras
  • Sergio Jara-Díaz

Abstract

This paper discusses derivations, and implications of, formulae to compute optimal space allocation and pricing for storage at container terminals. The case discussed in the paper considers elastic arrivals and container dwelling times, which is a more general version of the case considered by the authors in their first publication on the subject. In general terms, the optimal prices have three components that capture the different facets of the process. The first element captures the combined effect of willingness to pay and marginal cost, i.e., the classic solution after Ramsey ( 1927 ). The second element represents the contribution of the capacity constraint, i.e., the element introduced in Holguín-Veras and Jara-Díaz ( 1999 ). The third element captures the role of elastic arrivals and represents the main contribution of this paper. The role of the cost structure is also analyzed. Copyright Springer Science + Business Media, LLC 2006

Suggested Citation

  • José Holguín-Veras & Sergio Jara-Díaz, 2006. "Preliminary Insights into Optimal Pricing and Space Allocation at Intermodal Terminals with Elastic Arrivals and Capacity Constraint," Networks and Spatial Economics, Springer, vol. 6(1), pages 25-38, March.
    • Handle: RePEc:kap:netspa:v:6:y:2006:i:1:p:25-38
    DOI: 10.1007/s11067-006-7683-6
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    Citations

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    Cited by:

    1. Youn Ju Woo & Jang-Ho Song & Kap Hwan Kim, 2016. "Pricing storage of outbound containers in container terminals," Flexible Services and Manufacturing Journal, Springer, vol. 28(4), pages 644-668, December.
    2. Kim, Kap Hwan & Kim, Ki Young, 2007. "Optimal price schedules for storage of inbound containers," Transportation Research Part B: Methodological, Elsevier, vol. 41(8), pages 892-905, October.
    3. Kap Hwan Kim & Youn Ju Woo & Jae Gwan Kim, 0. "Space reservation and remarshalling operations for outbound containers in marine terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 0, pages 1-25.
    4. Kap Hwan Kim & Youn Ju Woo & Jae Gwan Kim, 2021. "Space reservation and remarshalling operations for outbound containers in marine terminals," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(1), pages 154-178, March.
    5. Xiao, Tingting & Ha, Albert Y., 2018. "Optimal unloading and storage pricing for inbound containers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 210-228.

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