Newsvendor Model-based Vehicle Renting Strategy for Logistics Companies during Online Shopping Promotion Seasons

The promotion season leads to a sharp increase in express parcels, causing the original vehicles of logistics companies to be unable to meet the transportation demand. Renting vehicles from outside is a way to ease transportation supply and demand, but most existing methods focus on transportation efficiency and ignore the profits of logistics companies. This paper proposes a vehicle renting method based on the newsvendor model, which can determine the renting quantity and renting duration of vehicles with different capacities. The research helps logistics companies predesign vehicle renting strategies to get more profits.