Developing green fleet management strategies: Repair/retrofit/replacement decisions under environmental regulation

The considerable cost of maintaining large fleets has generated interest in cost minimization strategies. With many related decisions, numerous constraints, and significant sources of uncertainty (e.g. vehicle breakdowns), fleet managers face complex dynamic optimization problems. Existing methodologies frequently make simplifying assumptions or fail to converge quickly for large problems. This paper presents an approximate dynamic programming approach for making vehicle purchase, resale, and retrofit decisions in a fleet setting with stochastic vehicle breakdowns. Value iteration is informed by dual variables from linear programs, as well as other bounds on vehicle shadow prices. Sample problems are based on a government fleet seeking to comply with emissions regulation. The model predicts the expected cost of compliance, the rules the fleet manager will use in deciding how to comply, and the regulation’s impact on the value of vehicles in the fleet. Stricter regulation lowers the value of some vehicle categories while raising the value of others. Such insights can help guide regulators, as well as the fleet managers they oversee. The methodologies developed could be applied more broadly to general multi-asset replacement problems, many of which have similar structures.     

Assessing a maritime service website prototype in a ship bridge simulator: navigators’ experiences and perceptions of novel e-Navigation solutions

The aim of this study was to assess proof of concept and usability of a maritime service website prototype in a full-mission ship bridge simulator through Swedish mariners’ experiences and perceptions. This test was part of the European Commission’s EfficienSea2 project for e-navigation. The prototype was intended as an aid to existing standard systems and methodologies for planning, executing and monitoring voyages. The study began with 5 days of simulator trials focused on today’s standard practices. This served as a baseline to compare to subsequent 4 days of simulator trials testing the prototype. For data collection, observations, video footage, interviews, and eye tracking were used. Data analysis included breaking apart the qualitative data to capture the perceptions of the participants, and a preliminary analysis of eye-tracking data as a complement. The results suggested that the prototype could be more suitable for a route planning stage, that the participants were familiar with similar existing solutions from other manufacturers, and that the contents of the tool would be most beneficial if integrated within the Electronic Chart Display and Information Systems (ECDIS). There is a pressing need for the novel solutions to be user needs-driven, integrated with the existing technologies, and standardized across the domain, and these processes must go hand-in-hand with accounting for all involved stakeholders, procedures, regulations, and training, as this will alter the course of shipping.     

An advanced risk analysis approach for container port safety evaluation

Risk analysis in seaports plays an increasingly important role in ensuring port operation reliability, maritime transportation safety and supply chain distribution resilience. However, the task is not straightforward given the challenges, including that port safety is affected by multiple factors related to design, installation, operation and maintenance and that traditional risk assessment methods such as quantitative risk analysis cannot sufficiently address uncertainty in failure data. This paper develops an advanced Failure Mode and Effects Analysis (FMEA) approach through incorporating Fuzzy Rule-Based Bayesian Networks (FRBN) to evaluate the criticality of the hazardous events (HEs) in a container terminal. The rational use of the Degrees of Belief (DoB) in a fuzzy rule base (FRB) facilitates the implementation of the new method in Container Terminal Risk Evaluation (CTRE) in practice. Compared to conventional FMEA methods, the new approach integrates FRB and BN in a complementary manner, in which the former provides a realistic and flexible way to describe input failure information while the latter allows easy updating of risk estimation results and facilitates real-time safety evaluation and dynamic risk-based decision support in container terminals. The proposed approach can also be tailored for wider application in other engineering and management systems, especially when instant risk ranking is required by the stakeholders to measure, predict and improve their system safety and reliability performance.     

Design and evaluation of an integrated inventory and transportation system

This paper proposes the adoption of an integrated inventory and transportation system (IITS) to minimize the total costs of inventory and transportation. A non-linear programing is developed by analyzing transportation and inventory costs with one supplier and many retailers in the distribution environment. The paper compares the proposed model with the traditional approach in computing total costs with numerical data. The results indicate that the total costs can be optimized by adopting integrated programing rather than the traditional approach, along with achieving improved customer service levels. In particular, sensitivity analysis is applied to determine the performance of the IITS under various transportation costs, holding costs and shortage costs. It shows that the transportation cost per unit is most sensitive in the proposed model. In this situation, the IITS is more effective for cost saving when set-up cost, holding and shortage costs are high, but is less effective for situations involving high per-unit transportation costs.     

Evolution of coastal hazards policies in the United States

The ocean and Great Lakes coasts of the United States are experiencing widespread economic and environmental damage from coastal flooding and erosion. During this century, public response to such coastal hazards has evolved haphazardly in response to particular disasters. Over time, however, the range of response has broadened as research has helped to refine public understanding of physical coastal processes, and specific disasters have been studied before longer term forms of institutional response have been formulated. Earlier reliance on engineered shoreline protection has been supplemented by beach nourishment, flood insurance, building and land use regulations, coastal zone planning, and other approaches. This article interprets the evolution of such public policy innovations in terms of a model that depicts the interaction of spatially differentiated systems of physical, legal, and cultural phenomena in the coastal context.     

The use of demand correlation in the modeling of air carrier departure delays as first‐order autoregressive random processes

A method for modeling air carrier departure delays at commercial‐service airports as autoregressive random processes is presented. This method employs the correlation of a priori demand data to significantly reduce prediction error in the optimal least‐squares estimator for additive white noise. The reduction factor of the prediction error is demonstrated to be on the order of 10² over that of the unbiased estimator. Copyright © 2011 John Wiley & Sons, Ltd.     

Optimization of transport investment and pricing policies: the role of transport pricing in network design

This paper investigates the role of transport pricing in network design and describes two facts about flow pattern in a transportation system. The first, illustrated by an example of Braess paradox, is that adding a new link to the network does not necessarily minimize the total travel time. The second is that introducing of appropriate toll pricing may reduce not only the total network time but also the travel time for each individual traveller. It follows with the investigations of different system objectives and different pricing policies (only toll pricing and distance‐based pricing are considered), and shows how they affect the system performance and flow pattern. Lastly, a systematic optimization process is proposed for integrated planning of transport network and pricing policies.     

A new efficient EDI system for container cargo logistics

There have been many efforts to develop a logistics information system in the Korean logistics industry. In spite of these efforts, there are many points which need improvement in the Logistics Information System, of which function is the electronic data communication without added value. This paper aims to describe some of the main problems and the successful factors which are being found in the evolution of the present EDI systems for clearing import/export container cargoes, with special reference to Singapore, Korea, and Japan. Following this, leaving legal issues aside, to suggest workable guidelines for designing a new efficient EDI system for container cargo logistics. As a result of the review, the following successful factors are drawn: (a) the planning, requirement analysis and design of EDI are critical, as it provides a framework for its implementation; (b) as the data of customs clearance are an integral part of a logistics EDI system, the inclusion of customs in the system design is essential; (c) the sharing system of cargo data as the framework of the logistics EDI is efficient for data interchange; (d) the EDI software for the user has been developed and provided by an EDI network operating company; and (e) to facilitate communication between trading partners and the transport sector, it is necessary to adopt a global message standard, such as EDIFACT.     

Port privatization under Cournot vs. Bertrand competition: a third-market approach

By incorporating port competition into a third-market model consisting of two exporting firms and one importing country, we demonstrate the endogenous choice of port structures (i.e. privatization or public ownership) under either Bertrand or Cournot competition. In contrast to previous studies on port competition, we analyze the port strategy in view of all trading countries (i.e. importing country and exporting countries). We find that regardless of transport cost, the port ownership strategy alters according to exporting firm’s competition mode. Under Bertrand competition, the choice of port ownership structure depends on the degree of imperfect substitutability. However, under Cournot competition, all trading countries choose same ownership structures of each port. By comparing equilibrium of each competition mode, we show that welfare of exporting country under Cournot competition is higher than under Bertrand competition if goods are sufficiently substitutes. In contrast, importing country prefers Bertrand competition to Cournot competition when the competitive pressure is sufficiently high.