Method for transportation cost calculation on the basis of full cycle (round trip)

Abstract

Background/Objectives: This paper considers the issue of transportation cost calculation in terms of a "Full Truck Load, FTL" model for the "to and fro" trip which is called a "round trip". Methods/Statistical analysis: The authors applied statistical analysis to determine all the possible options of round trips for a specific direction that have already been carried out by a particular transport company, to break them down into component parts, to calculate the cost of each of them and to receive a general assessment of the profitability/unprofitability of the round trip. Findings: The paper has studied all the main types of round trips and gives examples of them with a detailed analysis of their sectors. The authors have analyzed the factors influencing the transportation costs, as well as fixed and variable costs as a basic set of parameters for the cost calculation. The formula for the calculation of these parameters is given based on the experience of logisticians and dispatchers of large transport companies. As a result of this study, the authors have proposed a new method for calculation of transportation cost according to the round trip statistical analysis data. The study and analysis of statistical data on return variants of specific transport companies have allowed identifying some characteristics, according to which a starting point of return can be considered the metropolitan region of departure of the means of transportation mainly for "income producing" trips to another area, and the end point of return can be considered the point of next entry of the means of transportation in the metropolitan region. Application/Improvements: This method makes it possible to get a proper assessment of profitability or unprofitability of a transportation direction taking into account the accumulated traffic statistics regarding a particular transport company.