An electronic brokering process for truckload freight

  • Authors:

  • Kap Hwan Kim;Yong-Woon Choi;Woo Jun Chung

  • Affiliations:

  • Department of Industrial Engineering, Pusan National University, Busan, Korea;Department of Industrial Engineering, Pusan National University, Busan, Korea;Department of Industrial Engineering, Pusan National University, Busan, Korea

  • Venue:
  • ICNC'06 Proceedings of the Second international conference on Advances in Natural Computation - Volume Part II
  • Year:
  • 2006

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Abstract

This paper suggests a brokering process in which individual truckers participate in the process of matching trucks with freight. To maximize the total profit of trucks, a mathematical model is formulated for matching trucks with freight. It is shown that, by Lagrangean relaxation, the matching problem can be decomposed into a master problem and multiple sub-problems. This paper proposes a brokering process, based on the subgradient optimization technique, in which an optimality of individual truckers as well as the system optimality of truckers is satisfied. The effects of various practical considerations on the performance of the suggested brokering process are tested numerically and by using a simulation study.