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A decision support methodology for strategic planning in maritime transportation

Author

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  • Fagerholt, Kjetil
  • Christiansen, Marielle
  • Magnus Hvattum, Lars
  • Johnsen, Trond A.V.
  • Vabø, Thor J.

Abstract

This paper presents a decision support methodology for strategic planning in tramp and industrial shipping. The proposed methodology combines simulation and optimization, where a Monte Carlo simulation framework is built around an optimization-based decision support system for short-term routing and scheduling. The simulation proceeds by considering a series of short-term routing and scheduling problems using a rolling horizon principle where information is revealed as time goes by. The approach is flexible in the sense that it can easily be configured to provide decision support for a wide range of strategic planning problems, such as fleet size and mix problems, analysis of long-term contracts and contract terms. The methodology is tested on a real case for a major Norwegian shipping company. The methodology provided valuable decision support on important strategic planning problems for the shipping company.

Suggested Citation

  • Fagerholt, Kjetil & Christiansen, Marielle & Magnus Hvattum, Lars & Johnsen, Trond A.V. & Vabø, Thor J., 2010. "A decision support methodology for strategic planning in maritime transportation," Omega, Elsevier, vol. 38(6), pages 465-474, December.
    • Handle: RePEc:eee:jomega:v:38:y:2010:i:6:p:465-474
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    References listed on IDEAS

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