PIECEWISE LINEAR PROGRAMMING SOLUTIONS OF TRANSPORTATION COSTS AS OBTAINED FROM RATE TARIFFS

Cost functions for shipping a product by common carrier (rail and truck) are found to differ from the classical transportation problem. These cost functions are piecewise linear rather than proportional to the number of miles and/or quantity shipped. Cost functions for shipping by rail are continuous, but the cost functions for shipping by truck have a discontinuity that is similar to the fixed-charge problem. By approximating the fixed-charge step with a finite slope, both types of problems can be solved with separable-convex programming. An example is given.

• Corporate Authors:

  American Institute of Industrial Engineers

  345 East 47th Street
  New York, NY  United States  10017
• Authors:
  • VOGT, L
  • Even, J
• Publication Date: 1972-6

Media Info

• Features: References;
• Pagination: p. 148-153
• Serial:
  • American Institute of Indust Engrs-Transactions
  • Volume: 4
  • Issue Number: 2
  • Publisher: American Institute of Industrial Engineers

Subject/Index Terms

• TRT Terms: Costs; Linear programming; Tariffs
• Subject Areas: Economics; Finance; Railroads;

Filing Info

• Accession Number: 00046424
• Record Type: Publication
• Source Agency: Engineering Index
• Files: TRIS
• Created Date: Jul 31 1973 12:00AM