Shipping Container Logistics and Allocation

A major shipping company in Hong Kong is faced with several logistical and allocation problems. It needs to find a better way to allocate empty containers that are transported from the Middle East to ports in the Far East, subject to vessel schedules and capacities. It needs to know what to do when...

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Bibliographic Details
Published in:The Journal of the Operational Research Society Vol. 46; no. 6; pp. 687 - 697
Main Authors: Lai, K. K., Lam, Kokin, Chan, W. K.
Format: Journal Article
Language:English
Published: London Taylor & Francis 01.06.1995
Macmillan Press
Palgrave Macmillan UK
Palgrave
Pergamon Press
Taylor & Francis Ltd
Subjects:
Allocation
Applied sciences
Business and Management
Case Oriented Papers
Case-Oriented Paper
Container terminals
Exact sciences and technology
Heuristic
Heuristics
Leases
Logistics
Management
Operational research and scientific management
Operational research. Management science
Operations research
Operations Research/Decision Theory
Planning
Ports
Safety stock
Sea Transport
Shipping
Short term leases
Simulation
Simulations
Storage containers
Studies
Hong Kong China
China
Planning
Allocation
Sea Transport
Simulation
Heuristics
Logistics
Function block diagram
Conservation of resources
Computer simulation
Container ship
Heuristic method
Simulation model
Maritime transportation
Forecast model
Method study
ISSN:0160-5682, 1476-9360
Online Access:Get full text
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Summary:A major shipping company in Hong Kong is faced with several logistical and allocation problems. It needs to find a better way to allocate empty containers that are transported from the Middle East to ports in the Far East, subject to vessel schedules and capacities. It needs to know what to do when the supply of empty containers is less than the demand, and it needs to determine the mix of container types that the company should maintain in the long run. To deal with these challenges, a simulation model of the shipping company's operational activities was developed. Heuristic search was employed to identify the policies that yield the lowest operating cost in terms of leasing, storage, pick-up, drop-off and other charges. What makes the problem difficult is that the forecasts of future export movement as well as the demand for empty containers change continually and the company is faced with the possibility of lost sales if containers are not available when requested by customers. This study provided insights that resulted in substantial savings to the shipping company while increasing customers' satisfaction.
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ISSN:0160-5682
1476-9360
DOI:10.1057/jors.1995.98