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EOR
2007

Planning and approximation models for delivery route based services with price-sensitive demands

10 years 2 months ago
Planning and approximation models for delivery route based services with price-sensitive demands
Classical vehicle routing problems typically do not consider the impact of delivery price on the demand for delivery services. Existing models seek the minimum sum of tour lengths in order to serve the demands of a given set of customers. This paper proposes approximation models to estimate the impacts of price on delivery services when demand for delivery service is price dependent. Such models can serve as useful tools in the planning phase for delivery service providers and can assist in understanding the economics of delivery services. These models seek to maximize profit from delivery service, where price determines demand for deliveries as well as the total revenue generated by satisfying demand. We consider a variant of the model in which each customer’s delivery volume is price sensitive, as well as the case in which customer delivery volumes are fixed, but the total number of customers who select the delivery service provider is price sensitive. A third model variant allo...
Joseph Geunes, Zuo-Jun Max Shen, Akin Emir
Added 14 Dec 2010
Updated 14 Dec 2010
Type Journal
Year 2007
Where EOR
Authors Joseph Geunes, Zuo-Jun Max Shen, Akin Emir
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