Revenue management with two fare classes in synchromodal container transportation
- PDF / 2,338,789 Bytes
- 40 Pages / 439.37 x 666.142 pts Page_size
- 61 Downloads / 166 Views
Revenue management with two fare classes in synchromodal container transportation Bart Van Riessen1,2 · Judith Mulder1 · Rudy R. Negenborn2 · Rommert Dekker1
© The Author(s) 2020
Abstract The cargo fare class mix (CFCM) problem aims to find the optimal fare class mix for a given intermodal transportation network based on known client demands. It is based on a revenue management problem for aviation passengers, the fare class mix problem, but considering intermodal cargo transportation, two major differences apply. Firstly, the CFCM’s premise is that long-term commitments to customers must be provided, such that a customer has a guaranteed daily capacity. Secondly, cargo may be rescheduled or rerouted, as long as the customer’s delivery due date is met. Our goal is to balance revenue maximisation and capacity utilisation by optimally combining two delivery service levels. Therefore, the optimisation problem is to select fare class limits at a tactical level up to which transportation demand will be accepted on a daily basis at the operational level. Any accepted demand that does not fit on the available network capacity during operation, must be transported by truck at increased expenses for the network operator. In this paper, we propose a faster method than the previously proposed solution method for a single corridor network and we provide proofs for the optimality of the result. Using this, we extend the problem to an intermodal network of multiple corridors. We provide numerical results for different settings, in which we compare the baseline of individual corridor optimums with the result of using rerouting. Finally, we apply the methods in a case study for an intermodal transportation network in North-West Europe. Keywords Intermodal planning · Synchromodal planning · Container transportation · Revenue management · Fare class sizes * Bart Van Riessen [email protected] Rudy R. Negenborn [email protected] Rommert Dekker [email protected] 1
Econometric Institute, Erasmus University Rotterdam, Rotterdam, The Netherlands
2
Department of Maritime and Transport Technology, Delft University of Technology, Delft, The Netherlands
13
Vol.:(0123456789)
B. Van Riessen et al.
1 Introduction In traditional intermodal container networks in practice, customers usually have strict requirements regarding route, mode and time of a container transport, by which the transportation planning problem is restricted. These types of restrictions are generally ignored in literature. However, multiple studies have shown that customers have an interest in transportation services that provide more flexibility to the transporter, as long as they receive the right incentives for that (Verweij 2011; Tavasszy et al. 2015; Dong et al. 2018; Khakdaman et al. 2017). In Van Riessen et al. (2017), we presented the Cargo Fare Class Mix in a case study of a single corridor. The goal was to maximise revenue for the transporter, by finding the optimal balance between two fare classes, with a higher priced Express service yi
Data Loading...
