CloudLogistic – A Formal Description of Exclusive Freight Routes Based on a Multi-Zone Model with Elliptic Isochrones

Abstract

Based on previous works this paper introduces a formal description of exclusive defined freight routes using a multi-zone approach to define source and target areas as elliptic isochrones. This work contributes to publications in context of the so-called “CloudLogistic” concept. As an innovative approach to strengthen the market position of Small and Medium-sized Enterprises (SME) and to increase their efficiency, the CloudLogistic concept aims for building a novel kind of freight cooperation in the area of Less than Truck Load (LTL) transports. The use of a multi-zone model enables the freight cooperation to maximize its efficiency, to implement innovative pricing strategies and to create individual unique selling features for each single Logistic Service Provider (LSP). By using an elliptic definition with geographical focal points for these zones a more flexible definition of source and target areas is realized. To reduce geographical impacts a time-based distance-function is used.

The presented design of the exclusiveness of freight routes by defining monopoles via so-called core-areas is a useful approach to deal between the individual requirements respectively intentions of each single LSP and the attainment of global goals of the whole collective network structure.