The benefits of carrier collaboration for capacity shortage under incomplete advance demand information

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Abstract

Shippers usually provide information about the demand to the carrier in advance which is termed as advance demand information (ADI). However, ADI is not always helpful for the carrier in the proper allocation of the available capacity because of its incomplete nature. At times, the carrier faces an acute shortage of capacity for completing orders making it imperative for the carriers to arrange for additional capacity. A collaborative practice through sharing of capacity at the individual level has been used to overcome this problem. A case-based study has been carried out to depict the benefits of collaboration. The findings suggest that sharing of capacity at individual level resulted in 8.6% increase in profit when compared with the profit earned by a standalone carrier.

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APA

Debroy, A., & Sarmah, S. P. (2019). The benefits of carrier collaboration for capacity shortage under incomplete advance demand information. In Advances in Intelligent Systems and Computing (Vol. 741, pp. 471–484). Springer Verlag. https://doi.org/10.1007/978-981-13-0761-4_46

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