An operational model for empty container management

Abstract

This paper proposes a mathematical programming approach for empty container management. Since directional imbalances in trade activities result in a surplus or shortage of empty containers in ports and depots, their management can be thought of as a min cost flow problem whose arcs represent services routes, inventory links and decisions concerning the time and place to lease containers from external sources. We adopt an hourly time-step in a dynamic network and, although this time-period generates large-size instances, the two implemented algorithms show a good computational efficiency. A possible case study of the Mediterranean basin is proposed and results are presented with a graphical representation, providing a useful support to decision-makers in the field