Liner container assignment model with transit-time-sensitive container shipment demand and its applications |
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| Institution: | 2. Department of Civil and Environmental Engineering, National University of Singapore, Singapore 117576, Singapore;3. Department of Industrial Engineering and Logistics Management, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong\n;1. Hasselt University, Transportation Research Institute (IMOB) Wetenschapspark 5 bus 6 Diepenbeek 3590, Belgium;2. Caesarea Rothschild Institute, University of Haifa, Israel;3. Fraunhofer Institute for Intelligent Analysis and Information Systems IAIS, Schloss Birlinghoven, Sankt Augustin, Germany;1. Department of Industrial Engineering, Galatasaray University, Ortaköy, İstanbul, 34357, Türkiye;2. Department of Industrial Engineering and Logistics Management, The Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong |
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| Abstract: | This paper proposes a practical tactical-level liner container assignment model for liner shipping companies, in which the container shipment demand is a non-increasing function of the transit time. Given the transit-time-sensitive demand, the model aims to determine which proportion of the demand to fulfill and how to transport these containers in a liner shipping network to maximize the total profit. Although the proposed model is similar to multi-commodity network-flow (MCNF) with side constraints, unlike the MCNF with time delay constraints or reliability constraints that is NP-hard, we show that the liner container assignment model is polynomially solvable due to its weekly schedule characteristics by developing two link-based linear programing formulations. A number of practical extensions and applications are analyzed and managerial insights are discussed. The polynomially solvable liner container assignment model is then applied to address several important decision problems proposed by a global liner shipping company. |
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