Quantity discount with freight consolidation

The authors study an integrated quantity discount and vehicle routing problem where truck utilization is increased by building multi-stop routes and increasing order sizes through a purchase incentive. They model the problem and prove it to be NP-hard. Their experiments show that commercial solvers do not effectively solve instances with more than ten buyers. They propose the use of non-compromising route elimination rules and other improvement techniques for a route-based formulation. Their experimentation suggests that a cost savings of 18% can be realized by utilizing their model.

• Record URL:
  • https://doi.org/10.1016/j.tre.2014.03.004
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S1366554514000374
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • Nguyen, H N
  • Rainwater, C E
  • Mason, S J
  • Pohl, E A
• Publication Date: 2014-6

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 66-82
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 66
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Costs; Discount; Freight consolidators; Routes and routing; Shipments
• Uncontrolled Terms: Vehicle routing problem
• Subject Areas: Finance; Freight Transportation; Planning and Forecasting; I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01529037
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 26 2014 9:31AM