Ride service outsourcing for profit maximization Academic Article uri icon

abstract

  • Transportation service subcontracting is becoming an effective means of business for many leading carriers to maintain their market dominance and profitability. This research is based on an outsourcing practice in one of the few largest limousine fleet companies in the US, whose (mostly advance) demand for services often exceeds its capacity. We develop a model for ride service outsourcing. A column generation method is proposed. The outsourcing decision is made simultaneously with pre-scheduling of in-house ride services as well as staffing. Test with services data indicates that the developed method dramatically improves the carrier's outsourcing decision. © 2008 Elsevier Ltd. All rights reserved.

author list (cited authors)

  • Li, Y., Wang, X., & Adams, T. M.

citation count

  • 14

publication date

  • January 2009