Optimization modeling in acquisitions: A case study from the motor carrier industry

Abstract

This paper develops a comprehensive methodology to optimize the planning of acquiring motor carriers in transportation companies. A conceptual framework describing the nature of the asset acquisition planning problem is posited, followed by the detailed development of a network flows-based optimization model. A study is undertaken at a Canadian transportation company that examines current acquisition planning for heavy trucking equipment. This is followed by a discussion of findings, managerial implications and directions for future research. Copyright © November 2006, by the Institute for Supply Management, Inc.™.