A Mechanism for Determining Tanker Truck Transport Rates: A Case of Oil Products Supply Chain

In order to min imize costs of an oil products distribution company, it is important to determine the appropriate transport rates (TRs) that lead to satisfying both the transporters and the company. This paper introduces a systematic and scientific method for calcu lating the TRs for tanker trucks. Calculating TRs is based on a co mb ination of finished cost and engineering economics techniques in which all the costs related to the tanker truck transportation are considered as financial flows over time. Finally, we explain about designing a computer-based system for calculat ing the TRs and estimating the required budget.