<abstract xmlns="http://www.w3.org/1999/xhtml"> The transport activity is one of the most expensive processes in the supply chain. Forwarding and transport companies focuses on the optimization of transportation and the reduction of transport costs.The goal of this study is to develop a method which calculate the first (prime) cost of a given transport task more precisely than the state of the art practices. In practice the calculation of transport fee depends on the individual estimation methods of the transport managers, which could result losses for the company.In this study the elaborated calculation method for total first cost is detailed for three types of fulfilment of transport tasks. The most common type of achievement is, when “own vehicle is used with own driver”. A software was also developed for this case based on the elaborated method.Based on the calculations of our software, the first cost can be defined quickly and precisely to realize higher profit.</abstract>

The transport activity is one of the most expensive processes in the supply chain. Forwarding and transport companies focuses on the optimization of transportation and the reduction of transport costs.The goal of this study is to develop a method which calculate the first (prime) cost of a given transport task more precisely than the state of the art practices. In practice the calculation of transport fee depends on the individual estimation methods of the transport managers, which could result losses for the company.In this study the elaborated calculation method for total first cost is detailed for three types of fulfilment of transport tasks. The most common type of achievement is, when “own vehicle is used with own driver”. A software was also developed for this case based on the elaborated method.Based on the calculations of our software, the first cost can be defined quickly and precisely to realize higher profit.

First Cost Calculation Methods for Road Freight Transport Activity

Institute of Logistics, University of Miskolc Miskolc,

Transport and Telecommunication Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"First Cost Calculation Methods for Road Freight Transport Activity"}

The transport activity is one of the most expensive processes in the supply chain. Forwarding and transport companies focuses on the optimization of...

First Cost Calculation Methods for Road Freight Transport Activity

Published Online: Apr 26, 2017

Page range: 107 - 117

DOI: https://doi.org/10.1515/ttj-2017-0010

Keywords
road freight transport, first cost, calculation, profit maximization, software

© Transport and Telecommunication Institute

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

First Cost Calculation Methods for Road Freight Transport Activity

Published Online: Apr 26, 2017

Page range: 107 - 117

DOI: https://doi.org/10.1515/ttj-2017-0010

Keywordsroad freight transport, first cost, calculation, profit maximization, software

© Transport and Telecommunication Institute

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
road freight transport, first cost, calculation, profit maximization, software