Flexible strategic planning of transport systems

Abstract

This paper presents a decision support methodology for long-range planning of transport systems that exhibits strategic flexibility and stochastic system parameters. Unlike one-off strategic decisions, flexible decisions should be dynamically reformulated with time. The proposed methodology is based on the construction of a tree structure of multiple interlinked tactical planning problems, each associated with a scenario in the tree, where problems under scenarios at intermediate dates incorporate in their formulation the solution of the corresponding problems associated with past (future) connected scenarios. The resulting tree structure of interconnected planning decisions becomes a strategic-tactical decision support system that allows managers to formulate suitable flexible strategic decisions that mitigate the consequences associated with downside scenarios while taking advantage of the upside opportunities. The methodology is applied to the planning of a fleet deployment through charter contracts where contract prices depend on both market behavior and the duration of the contract itself.