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Multi-period empty container repositioning with stochastic demand and lost sales

Author

Listed:
  • B Zhang

    (The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR, China)

  • C T Ng

    (The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR, China)

  • T C E Cheng

    (The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR, China)

Abstract

This paper considers repositioning empty containers between multi-ports over multi-periods with stochastic demand and lost sales. The objective is to minimize the total operating cost including container-holding cost, stockout cost, importing cost and exporting cost. First, we formulate the single-port case as an inventory problem over a finite horizon with stochastic import and export of empty containers. The optimal policy for period n is characterized by a pair of critical points (An), that is, importing empty containers up to An; exporting empty containers down to Sn; and doing nothing, otherwise. A polynomial-time algorithm is developed to determine the two thresholds, that is, An, for each period. Next, we formulate the multi-port problem and determine a tight lower bound on the cost function. On the basis of the two-threshold optimal policy for a single port, a polynomial-time algorithm is developed to find an approximate repositioning policy for multi-ports. Simulation results show that the proposed approximate repositioning algorithm performs very effectively and efficiently.

Suggested Citation

  • B Zhang & C T Ng & T C E Cheng, 2014. "Multi-period empty container repositioning with stochastic demand and lost sales," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 65(2), pages 302-319, February.
    • Handle: RePEc:pal:jorsoc:v:65:y:2014:i:2:p:302-319
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    Citations

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    Cited by:

    1. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    2. Yang, Yu & Ridouane, Yassine & Boland, Natashia & Erera, Alan & Savelsbergh, Martin, 2022. "Substitution-based equipment balancing in service networks with multiple equipment types," European Journal of Operational Research, Elsevier, vol. 300(3), pages 966-978.
    3. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    4. Zirui Liang & Ryuichi Shibasaki & Yuji Hoshino, 2021. "Do Foldable Containers Enhance Efficient Empty Container Repositioning under Demand Fluctuation?—Case of the Pacific Region," Sustainability, MDPI, vol. 13(9), pages 1-24, April.
    5. Wadhwa, Satpal Singh & Farahmand, Kambiz & Vachal, Kimberly, 2019. "A deterministic mathematical model to support future investment decisions for developing inland container terminals," Research in Transportation Economics, Elsevier, vol. 77(C).
    6. Amir Gharehgozli & Nima Zaerpour & Rene Koster, 2020. "Container terminal layout design: transition and future," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 610-639, December.
    7. Ksciuk, Jana & Kuhlemann, Stefan & Tierney, Kevin & Koberstein, Achim, 2023. "Uncertainty in maritime ship routing and scheduling: A Literature review," European Journal of Operational Research, Elsevier, vol. 308(2), pages 499-524.
    8. Xie, Yangyang & Liang, Xiaoying & Ma, Lijun & Yan, Houmin, 2017. "Empty container management and coordination in intermodal transport," European Journal of Operational Research, Elsevier, vol. 257(1), pages 223-232.
    9. Song, Zhuzhu & Tang, Wansheng & Zhao, Ruiqing, 2019. "Encroachment and canvassing strategy in a sea-cargo service chain with empty container repositioning," European Journal of Operational Research, Elsevier, vol. 276(1), pages 175-186.
    10. Najafi, Mehdi & Zolfagharinia, Hossein, 2021. "Pricing and quality setting strategy in maritime transportation: Considering empty repositioning and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 240(C).

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