Effects of truckload freight assignment methods on carrier capacity and pricing
Name
826913310-MIT.pdf
Description
Full printable version
Size
14.81 MB
Format
Adobe PDF
Checksum (MD5)
13b2c4f5504f58db632291c389bf4cfa
Author(s)
Kafarski, Lukasz
Caruso, David Allen
Advisor(s)
Chris Caplice.
Date Issued
2012
Publisher
Massachusetts Institute of Technology
Abstract
The analysis is based on one year of transactional data from a major beverage company and interviews with asset based and non-asset based truckload carriers. Throughout our research we investigate the use of asset based carriers and brokers as unique sources of capacity on low volume and medium haul lanes. We examine price escalation issues in the context of load tender rejections and daily shipment volumes on a given lane. Our study revealed that as the shipment volume goes up on a lane, prices could escalate as much as 30-40% over rates originally contracted with primary carriers. In the case of rejections though, as prices go up, the probability of not covering a load comes down. Additionally, we propose a lane aggregation methodology, which decreases variability and simplifies freight procurement for long and short haul shipments. Finally, through a carrier proximity study we demonstrate that distance from carrier domicile to pick up location has an impact on pricing for short haul shipments. Based on our findings, we identified building network robustness and creating available carrier capacity as critical factors to sustainable pricing, while still being able to maintain a high service level.
Description
Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2012.
Cataloged from PDF version of thesis.
Includes bibliographical references (p. 101-102).
Subjects
Engineering Systems Division.
MIT Department
Massachusetts Institute of Technology. Engineering Systems Division
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reproduction or distribution in any format is prohibited without written
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