Quantity discount pricing for rail transport in a dry port system

Xuan Qiu, Chung Yee Lee*

*Corresponding author for this work

Research output: Contribution to journalJournal Articlepeer-review

39 Citations (Scopus)

Abstract

A dry port is an inland intermodal terminal connected to a seaport via railways. This paper studies a rail transportation pricing problem with quantity discounts in a dry port system consisting of one dry port and multiple shippers. This problem is modeled as a Stackelberg game where the dry port is the leader and the shippers are followers. An all-units quantity discount pricing scheme with a single breakpoint is adopted. Optimal properties are analyzed and the global optimal solution is derived. Numerical studies are conducted to examine the effectiveness of quantity discount pricing under various scenarios.

Original languageEnglish
Pages (from-to)563-580
Number of pages18
JournalTransportation Research Part E: Logistics and Transportation Review
Volume122
DOIs
Publication statusPublished - Feb 2019

Bibliographical note

Publisher Copyright:
© 2019

Keywords

  • Dry port
  • Quantity discount
  • Rail container transport
  • Transportation pricing

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