Training a machine to automate spot pricing of logistics services in a large-scale network
First Claim
1. A method of training a machine to automate spot pricing of logistics services, the method performed by at least one hardware processor, comprising:
- receiving a plurality of original-destination routes in a network for transporting cargo;
clustering the plurality of original-destination routes into a plurality of clusters based on similarities of the original-destination routes;
clustering the plurality of clusters into a plurality of subgroups based on customer related factors,wherein the clustering is performed by training the machine to learn and store in a memory device a computer-implemented decision tree model and a computer-implemented regression model, and merging execution of the learned decision tree model and the learned regression model to create an interplay between segmentation and regression,the regression model comprising a logit function modeled as a function of a first parameter representing common effects on cargo attributes multiplied by a vector of attributes for quote k, a second parameter representing origin-destination pair effect multiplied by an indicator value mapping k to the origin-destination pair, and a random noise term;
determining influencing factors associated with each of the subgroups;
based on the influencing factors, generating a price elasticity curve for each of the subgroups;
based on the price elasticity curve and current network traffic, determining cargo transportation price associated with each of the subgroups,wherein the influencing factors comprise at least rate, chargeable weight (CWT), density, weight, volume, leadtime, number of pieces, freighter route, number of stops, customer industry, product code, special handling flag, seasonality indices indicating CWT demand relative to average CWT, revenue demand relative to average revenue and orders demand relative to average orders, shipper capacity, average price quoted to customer in market, average price quoted to customer overall, customer percent (%) revenue through spot market, and customer % CWT through spot market; and
dynamically balancing load in air traffic network in real-time via providing the cargo transportation price.
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Abstract
A machine learning algorithm is trained to learn to cluster a plurality of original-destination routes in a network for transporting cargo into a plurality of clusters based on similarities of the original-destination routes, and to learn to cluster the plurality of clusters into a plurality of subgroups based on customer behavior. Influencing criteria associated with each of the subgroups may be determined and based on the influencing criteria, a price elasticity curve for each of the subgroups may be generated. Based on the price elasticity curve and current network traffic, cargo transportation price associated with each of the subgroups may be determined.
19 Citations
17 Claims
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1. A method of training a machine to automate spot pricing of logistics services, the method performed by at least one hardware processor, comprising:
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receiving a plurality of original-destination routes in a network for transporting cargo; clustering the plurality of original-destination routes into a plurality of clusters based on similarities of the original-destination routes; clustering the plurality of clusters into a plurality of subgroups based on customer related factors, wherein the clustering is performed by training the machine to learn and store in a memory device a computer-implemented decision tree model and a computer-implemented regression model, and merging execution of the learned decision tree model and the learned regression model to create an interplay between segmentation and regression, the regression model comprising a logit function modeled as a function of a first parameter representing common effects on cargo attributes multiplied by a vector of attributes for quote k, a second parameter representing origin-destination pair effect multiplied by an indicator value mapping k to the origin-destination pair, and a random noise term; determining influencing factors associated with each of the subgroups; based on the influencing factors, generating a price elasticity curve for each of the subgroups; based on the price elasticity curve and current network traffic, determining cargo transportation price associated with each of the subgroups, wherein the influencing factors comprise at least rate, chargeable weight (CWT), density, weight, volume, leadtime, number of pieces, freighter route, number of stops, customer industry, product code, special handling flag, seasonality indices indicating CWT demand relative to average CWT, revenue demand relative to average revenue and orders demand relative to average orders, shipper capacity, average price quoted to customer in market, average price quoted to customer overall, customer percent (%) revenue through spot market, and customer % CWT through spot market; and dynamically balancing load in air traffic network in real-time via providing the cargo transportation price. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A computer readable storage medium storing a program of instructions executable by a machine to perform a method of training a machine to automate spot pricing of logistics services, the method comprising:
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receiving a plurality of original-destination routes in a network for transporting cargo; clustering the plurality of original-destination routes into a plurality of clusters based on similarities of the original-destination routes; clustering the plurality of clusters into a plurality of subgroups based on customer related factors, wherein the clustering is performed by training the machine to learn and store in a memory device a computer-implemented decision tree model and a computer-implemented regression model, and merging execution of the learned decision tree model and the learned regression model to create an interplay between segmentation and regression, the regression model comprising a logit function modeled as a function of a first parameter representing common effects on cargo attributes multiplied by a vector of attributes for quote k, a second parameter representing origin-destination pair effect multiplied by an indicator value mapping k to the origin-destination pair, and a random noise term; determining influencing factors associated with each of the subgroups; based on the influencing factors, generating a price elasticity curve for each of the subgroups; based on the price elasticity curve and current network traffic, determining cargo transportation price associated with each of the subgroups, wherein the influencing factors comprise at least rate, chargeable weight (CWT), density, weight, volume, leadtime, number of pieces, freighter route, number of stops, customer industry, product code, special handling flag, seasonality indices indicating CWT demand relative to average CWT, revenue demand relative to average revenue and orders demand relative to average orders, shipper capacity, average price quoted to customer in market, average price quoted to customer overall, customer percent (%) revenue through spot market, and customer % CWT through spot market; and dynamically balancing load in air traffic network in real-time via providing the cargo transportation price. - View Dependent Claims (9, 10, 11, 12, 13, 14)
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15. A system of training a machine to automate spot pricing of logistics services comprising:
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at least one hardware processor; a display device coupled to the hardware processor; the hardware processor operable to receive a plurality of original-destination routes in a network for transporting cargo; the hardware processor further operable to learn to train itself to cluster the plurality of original-destination routes into a plurality of clusters based on similarities of the original-destination routes; the hardware processor further operable to learn to train itself to cluster the plurality of clusters into a plurality of subgroups based on customer related factors, wherein the hardware processor performs clustering by training the hardware processor to learn a computer-implemented decision tree model and a computer-implemented regression model, and merging execution of the learned decision tree model and the learned regression model to create an interplay between segmentation and regression, the regression model comprising a logit function modeled as a function of a first parameter representing common effects on cargo attributes multiplied by a vector of attributes for quote k, a second parameter representing origin-destination pair effect multiplied by an indicator value mapping k to the origin-destination pair, and a random noise term; the hardware processor further operable to determine influencing factors associated with each of the subgroups, and based on the influencing factors, generate a price elasticity curve for each of the subgroups; the hardware processor further operable to, based on the price elasticity curve and current network traffic, determine cargo transportation price associated with each of the subgroups; the hardware processor further operable to visually display the subgroups in a graphical user interface on the display device, wherein the influencing factors comprise at least rate, chargeable weight (CWT), density, weight, volume, leadtime, number of pieces, freighter route, number of stops, customer industry, product code, special handling flag, seasonality indices indicating CWT demand relative to average CWT, revenue demand relative to average revenue and orders demand relative to average orders, shipper capacity, average price quoted to customer in market, average price quoted to customer overall, customer percent (%) revenue through spot market, and customer % CWT through spot market; and the hardware processor further operable to control dynamically balancing of load in air traffic network in real-time via providing the cargo transportation price. - View Dependent Claims (16, 17)
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Specification