Pricing of delivery service in a logistics network

Abstract

In this paper the problem of finding a computational fast method for pricing of the delivery service in a logistics network has been analyzed. The objective is to develop a supporting method for effective interaction among logistics service providers and customers. We make use of an analytical function to predict the final total cost of distribution and to develop an interaction protocol that, using the function, leads to a final win-win solution in which the most of the customers have agreed to accept a delivery time comporting a reduction of total distribution costs. We also validated the method by use of a simulation software, evaluating the results in terms of cost-efficiency and stability.