By Topic

Cost and Market-based Pricing in the Courier Express and Parcel Service Industry

Sign In

Cookies must be enabled to login.After enabling cookies , please use refresh or reload or ctrl+f5 on the browser for the login options.

Formats Non-Member Member
$33 $13
Learn how you can qualify for the best price for this item!
Become an IEEE Member or Subscribe to
IEEE Xplore for exclusive pricing!
close button

puzzle piece

IEEE membership options for an individual and IEEE Xplore subscriptions for an organization offer the most affordable access to essential journal articles, conference papers, standards, eBooks, and eLearning courses.

Learn more about:

IEEE membership

IEEE Xplore subscriptions

2 Author(s)
Marcel Kunkel ; PickPoint AG, Nieder-Olm, Germany ; Michael Schwind

This work presents a decision support system (DSS) that allows service providers in the courier, express, and parcel (CEP) delivery industry to improve speed and effectiveness in the pricing request for quotations (RFQ) for logistic services. This will be achieved, firstly, by calculating the impact of the insertion of new customers into an existing CEP network based on the marginal cost by solving a large scale vehicle routing problems (VRP). Secondly, the knowledge of the CEP company's sales organization about the success of former RFQs and the competitor's pricing policy is combined in two regression models in order to obtain a price recommendation for a given customer RFQ. Finally, the DSS allows the placing of an offer under a given RFQ winning probability, if the price recommendation is higher than the cost-based price with the addition a minimum profit margin which is defined by the management.

Published in:

2011 IEEE 13th Conference on Commerce and Enterprise Computing

Date of Conference:

5-7 Sept. 2011