ISSN: 2822-552X
A request selection and dynamic pricing in physical internet
1Yıldız Technical University, Faculty of Mechanical Engineering, İstanbul, Turkey
2Yıldız Technical University, Faculty of Mechanical Engineering, İstanbul, Turkey
3İstanbul Bilgi University, Faculty of Engineering and Natural Sciences, İstanbul, Turkey
Recent Advances in Science and Engineering 2022; 2(2): 58-63 DOI: 10.14744/rase.2022.0009
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Abstract

Recently, many companies are dynamically changing their pricing strategies in order to increase their profits and competitive advantage. Thanks to dynamic pricing strategies, companies that adapt quickly to changing conditions maximize their profits. In this study, a dynamic pricing model is proposed for demand pricing and selection in physical internet centers. Bid prices are given to the demands with the dynamic pricing model created by using the dynamic programming method. The bid price given with the dynamic pricing aims to maximize the carrier’s profit. After determining the prices that maximize the profit, demand selection is made in line with the vehicle capacities and integer programming model is used for the request selection model. Sample data was created to test the model. According to the findings, developing a dynamic pricing strategy is critical for logistic providers in the physical internet.