| Article ID: | iaor19952186 |
| Country: | United States |
| Volume: | 3C |
| Issue: | 3 |
| Start Page Number: | 173 |
| End Page Number: | 186 |
| Publication Date: | May 1995 |
| Journal: | Transportation Research. Part C, Emerging Technologies |
| Authors: | Levary Reuven R., Wan Ke |
| Keywords: | programming: linear |
A procedure for a shipper contracting with ocean container shipping companies is described. The procedure incorporates the solution to a linear programming transportation model with results from sensitivity analysis. The procedure described enables shippers to evaluate all possible means of obtaining the lowest adjusted price for a given shipping route in a short period of time. Shippers that stend a minimum amount of time on price negotiation are generally able to accept or reject a pending offer prior to expiration of a shipping company’s imposed time limit. A case study illustrates the negotiation procedure.