Relationship between price and performance : an analysis of the US trucking market
Name
927165610-MIT.pdf
Description
Full printable version
Size
6.77 MB
Format
Adobe PDF
Checksum (MD5)
071f6953cb3720aca66b0b535862b3ca
Author(s)
Amiryan, Nane, M. Eng. Massachusetts Institute of Technology
Bhattacharjee, Sharmistha
Advisor(s)
Chris Caplice.
Alternative Title
Analysis of the United States trucking market
Date Issued
2015
Publisher
Massachusetts Institute of Technology
Abstract
This thesis focuses on the study of the carrier-shipper relationships in the US trucking market. It uses data provided by a leading third party logistics (3PL) company to explore and determine whether a relationship exists between the prices charged by the carriers and the performance that they provide to the shippers. The performance metrics defined in the thesis are measured in three dimensions: on time pick-up, on time delivery, and acceptance ratio. The research uses ordinary least square (OLS) regression to study the effect of the performance parameters on the cost per load of a shipment. The research demonstrates that there is a mild relationship between on time delivery performance and price. With increase in on-time delivery performance, the price increases till a threshold is reached, beyond which it stabilizes. We found that a relationship exists between on-time pick-up and delivery. Since carriers who pick up late are able to deliver on time 80% of the times, the research could not find a direct relationship between on-time pick-up and price. The research also found that increased lane loyalty from a shipper to a carrier can lead to lower rates.
Description
Thesis: M. Eng. in Logistics, Massachusetts Institute of Technology, Engineering Systems Division, 2015.
Cataloged from PDF version of thesis.
Includes bibliographical references (pages 71-72).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
Terms of Use
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