OPTIMIZATION OF LESS-THAN-TRUCKLOAD REQUEST PRICING AND SELECTION FOR CARRIER IN PHYSICAL INTERNET

International audienceThis paper investigates a less-than-truckload (LTL) request pricing and selection problem to optimize carrier's revenue in Physical Internet (PI). PI can be considered as a global interconnection logistic system that connects logistic networks together via open logistic hubs. In a hub, many types of LTL requests with different volume and route arrive continually and are allocated to carriers frequently. LTL carriers can bid for these requests through participating several auctions. Being faced with many different requests, carrier needs to select one (or several) type of requests of interest to bid and meanwhile decides the bidding price to maximize his profit. Two scenarios are investigated, i.e. carrier with full capacity, or carrier with loads with known destination. For each scenario, an integer programming model based on a multi-legs dynamic pricing model is proposed to solve the request selection problem and pricing problem simultaneously. A computational study is conducted to demonstrate the feasibility of the models