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Fleet Sizing for Transporters with Seasonal Demands

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  • Roy, Debjit
  • Sebastian, Joesph
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    Abstract

    We develop a quick and approximate way to address the fleet sizing problem for transporters with non-stationary demands and uncertain trip times. Non-stationary demands are modeled using Markov-modulated Poisson process (MMPP) and the variable fleet size is modeled using multi-server queuing construct (MMPP(2)=M=C queue). The customer service level is expressed by the probability that a customer on arrival waits for availability of trucks. The waiting time probabilities are estimated from the steady-state probabilities, which are obtained from the solution of the continuous-time Markov chain. We demonstrate the fleet-sizing approach for a transporter with two level of demand rates and exponentially distributed truck unavailable times.

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    Paper provided by Indian Institute of Management Ahmedabad, Research and Publication Department in its series IIMA Working Papers with number WP2012-12-06.

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    Handle: RePEc:iim:iimawp:11467

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    1. Hari S. Abhyankar & Stephen C. Graves, 2001. "Creating an Inventory Hedge for Markov-Modulated Poisson Demand: An Application and Model," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 306-320, April.
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