Dedicated Fleet Contracting in Uncertain Demand and Freight Environment
Road transportation market for bulk commodities in India is subject to uncertain demand and freight environment. Dedicated vehicles are a solution to manage these uncertainties provided an optimum fleet size can be decided which will maximize total savings after factoring freight savings and vehicle idling losses. This paper proposes a analytical approach for calculating size of dedicated fleet for full truck load movement based on newsvendor model in logistics.
Keywords - Dedicated, Fleet, Newsvendor, Freight, Optimization