TITLE:
Optimization of Market Behavior of a Transportation Company
AUTHORS:
Nataliia Zusko
KEYWORDS:
Economic and Mathematical Models, Manufacture and Transport Systems, Equilibrium, Tariff, Price, Competition, Integration, Discount, Optimum
JOURNAL NAME:
Open Journal of Business and Management,
Vol.11 No.2,
March
17,
2023
ABSTRACT: The relevance of optimizing the interaction of
participants in manufacture and transport systems is due to the growth of the
scale of social production, the development of transnational companies and
international trade at the present stage of market transformations, economic
integration and development of transport corridors. In this paper we will optimize the market behavior of a transport enterprise
in the manufacture and transportation chain. Objectives: To determine the best
option for coordinating the actions of participants in the manufacture and
transport chain and to optimize the mechanism for granting discounts on the
tariff of the transport company. Research methods: economic and mathematical modeling, construction and mathematical
analysis of models of manufacture and transport systems, optimization computer
calculations, economic interpretation of the results. In this paper it will also be analyzed how
full or partial integration of the participants of manufacture and
transportation chains, such as coordination of actions, unification of
interests can ensure not only a significant increase in the profits of each
participant, but also an increase in production volumes and delivery of
products to consumers with a corresponding decrease in prices. The paper also portrays how every participant in the manufacture and
transportation chain can paradoxically benefit from the established mechanism
that would provide discounts on the tariff of a transport company depending on
the volume of cargo flow followed by principle the more cargo, the greater the
discount. It will be shown how manufacturer benefits by reducing transportation
costs, while the transport company earns less per container, but the
outstripping growth in the number of these containers provides it with a higher
profit. Consequently, the conditions for the feasibility of applying such a
mechanism of tariff discounts will also be established.