The relation between "excess capacity" and the quality of service is discussed, and the queueing theory is applied to two aspects of the truck transportation industry: the shipper and the trucking firm. The shippers demand for transport is treated as derived from the demand for his product. The assumptions are made that the time between order arrivals at the shipping firm is random and exponentially distributed, and that the time required by the shipper to fillorders is also random and exponentially distributed. Important features evident from the work described here include the following: the value of both goods being shipped and the optimal price are related; the transport price will vary with the traffic generating capacity of the destination; the overall level of capacity provided by the trucking industry is a function of the regulated rate; although it is not possible to specify a single formula for rates as a function of distance, it is shown that the commonly held view that rates per mile should necessarily fall as distance increases in not valid; based on the findings, the efficiency of route and commodity restrictions may be analyzed.

  • Corporate Authors:

    Motor Vehicles Manufacturers Association

    320 New Center Building
    Detroit, MI  United States  48202
  • Authors:
    • De Vany, A
    • Saving, T R
  • Publication Date: 1975-6-30

Media Info

  • Features: References;
  • Pagination: 85 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00131368
  • Record Type: Publication
  • Contract Numbers: ASD/TRS 7501-C6.12
  • Files: TRIS
  • Created Date: May 14 1976 12:00AM