Air freight forwarder’s allotment decision using goal programming approach.

Published

The Transportation Research Board 96th Annual Meeting (TRB2017)

Abstract

An air freight forwarder and an airline want to establish an allotment contract. Taking the forwarder’s viewpoint, we formulate its problem of choosing an allotment size, when there is uncertainty in its customer demand. The forwarder has multiple objectives, namely maximizing its expected contribution, and maintaining both customer service level and allotment utilization. The last two goals are conflicting objectives: The larger the allotment, the higher the service level, the lower the allotment utilization. We derive a closed-form solution for an optimal allotment that maximizes the forwarder’s expected contribution. We apply the goal programming approach to the forwarder’s multi-objective problem. Our numerical example illustrates the applicability of our model to a case study of one of the leading freight forwarders in Thailand.

(2017). Psycho-social Antecedents of Research Potentiality among Graduate Students: A SEM Approach. international Journal of Behavioral Science, 12(2), 50-70.