An Integrated Planning/Pricing Decision Model for Rail Container Transportation

The profit of rail operators is related to the pricing policy and the operation planning. The operator’s pricing policy affects the demand, and the demand is directly related to the rail operator’s revenue. Bulk of researches tried to optimize the pricing or operation planning strategies separately. As in fact, these two factors are connected with each other. The isolated research on either of them cannot get the optimal profit. In this paper, a bi-level model is proposed, which integrate the pricing and the operation planning, to maximize the profit of rail operators. The lower layer is designed to minimize the customer’s generalized cost, and the top layer is developed to maximize the revenue of rail operators. Simultaneously, the competition from road container transportation is considered in this model. An algorithm based on sensitivity analysis method is designed to solve the bi-level model. Numerical experiments is designed to evaluate the proposed model. The results show that the authors' method can significantly improve the rail operator’s profit in the competition market.

  • Supplemental Notes:
    • This paper was sponsored by TRB committee AR040 Standing Committee on Freight Rail Transportation.
  • Corporate Authors:

    Transportation Research Board

  • Authors:
    • Zhang, Xiaoqiang
    • Li, Lin
  • Conference:
  • Date: 2019


  • English

Media Info

  • Media Type: Digital/other
  • Features: References; Tables;
  • Pagination: 17p

Subject/Index Terms

Filing Info

  • Accession Number: 01697307
  • Record Type: Publication
  • Report/Paper Numbers: 19-05281
  • Files: TRIS, TRB, ATRI
  • Created Date: Dec 7 2018 9:23AM