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Centrality, flexibility and floating stocks: A quantitative evaluation of port-of-entry choices

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  • Eelco van Asperen

    (Center for Maritime Economics and Logistics, Erasmus University Rotterdam, Burgemeester Oudlaan 50, 3062 PA, Rotterdam, The Netherlands.)

  • Rommert Dekker

    (Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam, Burgemeester Oudlaan 50, 3062 PA Rotterdam, The Netherlands.)

Abstract

Ports provide a number of logistical choices concerning storage, onward transport and postponement. We investigate the flexibility offered by ports of a central location with respect to hinterland transport. This is illustrated through a case in which a number of alternative strategies are evaluated by means of simulation. We provide a simulation model and illustrate it with a case using detailed cost data, which allows us to quantify the value of the rerouting alternatives. A strategy that employs regional distribution centers coupled with a European Distribution Center results in the lowest cost per container. The superiority of this policy over standard centralized or decentralized distribution networks is largely based on the optimal balance between inventory and transportation cost, and the flexibility it offers.

Suggested Citation

  • Eelco van Asperen & Rommert Dekker, 2013. "Centrality, flexibility and floating stocks: A quantitative evaluation of port-of-entry choices," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 15(1), pages 72-100, March.
  • Handle: RePEc:pal:marecl:v:15:y:2013:i:1:p:72-100
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    Cited by:

    1. Dawn Russell & Kusumal Ruamsook & Violeta Roso, 2022. "Managing supply chain uncertainty by building flexibility in container port capacity: a logistics triad perspective and the COVID-19 case," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(1), pages 92-113, March.
    2. Flitsch, Verena & Brümmerstedt, Katrin, 2015. "Freight Transport Modelling of Container Hinterland Supply Chains," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.), Operational Excellence in Logistics and Supply Chains: Optimization Methods, Data-driven Approaches and Security Insights. Proceedings of the Hamburg , volume 22, pages 233-266, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    3. Zhengyi Li, 2019. "Optimal Utilization of Ports’ Free-of-Charge Times in One Distribution Center and Multiple Ports Inventory Systems," Complexity, Hindawi, vol. 2019, pages 1-12, February.

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