Practice Summaries: American Airlines Uses Should-Cost Modeling to Assess the Uncertainty of Bids for Its Full-Truckload Shipment Routes
Published Online:1 Apr 2011https://doi.org/10.1287/inte.1100.0515
Abstract
We used decision analysis to develop a probabilistic model to help American Airlines assess the uncertainty of bid quotes for its full-truckload (FTL) point-to-point freight shipments of maintenance equipment and in-flight service items in the United States. The model reduced the airline's risk of overpaying an FTL supplier.
