A two-stage model of vehicle routing and transport service pricing with backhauls

This paper focuses on the combined optimization problems of vehicle routing and transport service pricing with backhauls. Transport pricing is very much significant for a logistics company to acquire business share in China´s fiercely competitive transportation and logistics service market. However, the pricing is closely associated with the route pattern and the profit expectations of backhauls. The vehicle in linehaul usually transports goods directly to the desired places and thus makes extra profit in backhauls. This paper discusses a two-stage model which combines vehicle routing and transport pricing. With a case study, a solving process with modified genetic algorithm is given, along with the setting of bottom transport price. The research outcome of this paper is expected to provide a decision support for logistics companies in vehicle routing and transport pricing.