IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v19y2020i6d10.1057_s41272-020-00237-3.html
   My bibliography  Save this article

Bringing economies of integration into the costing of groupage freight

Author

Listed:
  • Christian Brabänder

    (Sennebogen Maschinenfabrik)

  • Maximilian Braun

    (University of Regensburg)

Abstract

The purpose of this paper is to develop a novel calculation scheme for the costs of distribution per shipment according to a cost-by-cause principle. We propose to estimate the full costs of distribution routes excluding and including a new consignor. Then, we estimate the marginal costs per shipment and per consignor. The contributions of this paper are (1) a comprehensive list of drivers of Economies of Integration and (2) a calculation scheme, how to estimate true marginal cost of new consignors. Practitioners may deploy the method and insights of this paper for tariff design, negotiations, consignor acquisition, and also demarketing.

Suggested Citation

  • Christian Brabänder & Maximilian Braun, 2020. "Bringing economies of integration into the costing of groupage freight," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(6), pages 366-385, December.
    • Handle: RePEc:pal:jorapm:v:19:y:2020:i:6:d:10.1057_s41272-020-00237-3
    DOI: 10.1057/s41272-020-00237-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-020-00237-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-020-00237-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Olli Bräysy & Michel Gendreau, 2005. "Vehicle Routing Problem with Time Windows, Part I: Route Construction and Local Search Algorithms," Transportation Science, INFORMS, vol. 39(1), pages 104-118, February.
    2. Theodore E. Keeler., 1989. "Deregulation and Scale Economies in the U. S. Trucking Industry: An Econometric Extension of the Survivor Principle," Economics Working Papers 89-100, University of California at Berkeley.
    3. Olli Bräysy & Michel Gendreau, 2005. "Vehicle Routing Problem with Time Windows, Part II: Metaheuristics," Transportation Science, INFORMS, vol. 39(1), pages 119-139, February.
    4. Özkaya, Evren & Keskinocak, PInar & Roshan Joseph, V. & Weight, Ryan, 2010. "Estimating and benchmarking Less-than-Truckload market rates," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 667-682, September.
    5. Keeler, Theodore E, 1989. "Deregulation and Scale Economies in the U.S. Trucking Industry: An Econometric Extension of the Survivor Principle," Journal of Law and Economics, University of Chicago Press, vol. 32(2), pages 229-253, October.
    6. J-F Cordeau & M Gendreau & G Laporte & J-Y Potvin & F Semet, 2002. "A guide to vehicle routing heuristics," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 53(5), pages 512-522, May.
    7. Florian Kellner & Andreas Otto, 2012. "Allocating CO 2 emissions to shipments in road freight transportation," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(4), pages 451-479, January.
    8. John S. Ying & Theodore E. Keeler, 1991. "Pricing in a Deregulated Environment: The Motor Carrier Experience," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 264-273, Summer.
    9. Lin, Cheng-Chang & Lin, Dung-Ying & Young, Melanie M., 2009. "Price planning for time-definite less-than-truckload freight services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(4), pages 525-537, July.
    10. G. Clarke & J. W. Wright, 1964. "Scheduling of Vehicles from a Central Depot to a Number of Delivery Points," Operations Research, INFORMS, vol. 12(4), pages 568-581, August.
    11. James N. Giordano, 2008. "Economies of scale after deregulation in LTL trucking: a test case for the survivor technique," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(4), pages 357-370.
    12. Fleischmann, Bernhard, 1993. "Designing distribution systems with transport economies of scale," European Journal of Operational Research, Elsevier, vol. 70(1), pages 31-42, October.
    13. Smith, L. Douglas & Campbell, James F. & Mundy, Ray, 2007. "Modeling net rates for expedited freight services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 192-207, March.
    14. Keeler, Theodore E., 1989. "Deregulation and Scale Economies in the U.S. Trucking Industry: An Economic Extension of the Survivor Principle," Department of Economics, Working Paper Series qt5rf5q1dx, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    15. Carlos F. Daganzo, 1987. "The Break-Bulk Role of Terminals in Many-to-Many Logistic Networks," Operations Research, INFORMS, vol. 35(4), pages 543-555, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aldona Jarašūnienė & Kristina Čižiūnienė & Artūras Petraška, 2022. "Sustainability Promotion by Digitalisation to Ensure the Quality of Less-Than-Truck Load Shipping," Sustainability, MDPI, vol. 14(19), pages 1-20, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hernández, Carlos Eduardo & Cantillo-Cleves, Santiago, 2024. "A toolkit for setting and evaluating price floors," Journal of Public Economics, Elsevier, vol. 232(C).
    2. Brandstätter, Christian & Reimann, Marc, 2018. "The Line-haul Feeder Vehicle Routing Problem: Mathematical model formulation and heuristic approaches," European Journal of Operational Research, Elsevier, vol. 270(1), pages 157-170.
    3. Lai, David S.W. & Caliskan Demirag, Ozgun & Leung, Janny M.Y., 2016. "A tabu search heuristic for the heterogeneous vehicle routing problem on a multigraph," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 86(C), pages 32-52.
    4. Liyang Xiao & Mahjoub Dridi & Amir Hajjam El Hassani & Hongying Fei & Wanlong Lin, 2018. "An Improved Cuckoo Search for a Patient Transportation Problem with Consideration of Reducing Transport Emissions," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    5. Kevin E. Henrickson & Wesley W. Wilson, 2008. "Compensation, Unionization, and Deregulation in the Motor Carrier Industry," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 153-177, February.
    6. Liu, Ran & Jiang, Zhibin, 2012. "The close–open mixed vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 220(2), pages 349-360.
    7. Qi, Mingyao & Lin, Wei-Hua & Li, Nan & Miao, Lixin, 2012. "A spatiotemporal partitioning approach for large-scale vehicle routing problems with time windows," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 248-257.
    8. Olli Bräysy & Michel Gendreau, 2005. "Vehicle Routing Problem with Time Windows, Part II: Metaheuristics," Transportation Science, INFORMS, vol. 39(1), pages 119-139, February.
    9. Drexl, Michael & Schneider, Michael, 2015. "A survey of variants and extensions of the location-routing problem," European Journal of Operational Research, Elsevier, vol. 241(2), pages 283-308.
    10. H. E. Frech, 2002. "Corporate Demography and Empirical Industrial Organization: A Critical Appraisal," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(3), pages 437-448.
    11. Zhang, Zizhen & Qin, Hu & Wang, Kai & He, Huang & Liu, Tian, 2017. "Manpower allocation and vehicle routing problem in non-emergency ambulance transfer service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 45-59.
    12. Andres Figliozzi, Miguel, 2012. "The time dependent vehicle routing problem with time windows: Benchmark problems, an efficient solution algorithm, and solution characteristics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(3), pages 616-636.
    13. Böhnlein, Dominik & Schweiger, Katharina & Tuma, Axel, 2011. "Multi-agent-based transport planning in the newspaper industry," International Journal of Production Economics, Elsevier, vol. 131(1), pages 146-157, May.
    14. Wang, Zheng, 2018. "Delivering meals for multiple suppliers: Exclusive or sharing logistics service," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 496-512.
    15. Vidal, Thibaut & Crainic, Teodor Gabriel & Gendreau, Michel & Prins, Christian, 2013. "Heuristics for multi-attribute vehicle routing problems: A survey and synthesis," European Journal of Operational Research, Elsevier, vol. 231(1), pages 1-21.
    16. Tobias Harks & Felix G König & Jannik Matuschke, 2013. "Approximation Algorithms for Capacitated Location Routing," Transportation Science, INFORMS, vol. 47(1), pages 3-22, February.
    17. Ciancio, Claudio & Laganá, Demetrio & Vocaturo, Francesca, 2018. "Branch-price-and-cut for the Mixed Capacitated General Routing Problem with Time Windows," European Journal of Operational Research, Elsevier, vol. 267(1), pages 187-199.
    18. Talarico, Luca & Sörensen, Kenneth & Springael, Johan, 2015. "Metaheuristics for the risk-constrained cash-in-transit vehicle routing problem," European Journal of Operational Research, Elsevier, vol. 244(2), pages 457-470.
    19. Schneider, Kellie & Nurre, Sarah G., 2019. "A multi-criteria vehicle routing approach to improve the compliance audit schedule for food banks," Omega, Elsevier, vol. 84(C), pages 127-140.
    20. Nicolas Rincon-Garcia & Ben J. Waterson & Tom J. Cherrett, 2018. "Requirements from vehicle routing software: perspectives from literature, developers and the freight industry," Transport Reviews, Taylor & Francis Journals, vol. 38(1), pages 117-138, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:19:y:2020:i:6:d:10.1057_s41272-020-00237-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.