Modelling the impact of liner shipping network perturbations on container cargo routing: Southeast Asia to Europe application

Understanding how container routing stands to be impacted by different scenarios of liner shipping network perturbations such as natural disasters or new major infrastructure developments is of key importance for decision-making in the liner shipping industry. The variety of actors and processes within modern supply chains and the complexity of their relationships have previously led to the development of simulation-based models, whose application has been largely compromised by their dependency on extensive and often confidential sets of data. This study proposes the application of optimisation techniques less dependent on complex data sets in order to develop a quantitative framework to assess the impacts of disruptive events on liner shipping networks. We provide a categorization of liner network perturbations, differentiating between systemic and external and formulate a container assignment model that minimises routing costs extending previous implementations to allow feasible solutions when routing capacity is reduced below transport demand. We develop a base case network for the Southeast Asia to Europe liner shipping trade and review of accidents related to port disruptions for two scenarios of seismic and political conflict hazards. Numerical results identify alternative routing paths and costs in the aftermath of port disruptions scenarios and suggest higher vulnerability of intra-regional connectivity

Scheduled service network design with synchronization and transshipment constraints for intermodal container transportation networks

In this paper we address the problem of scheduled service network design for container freight distribution along rivers, canals, and coastlines. We propose a new concise continuous- time mixed-integer linear programming model that accurately evaluates the time of occurrence of transportation events and the number of containers transshipped between vehicles. Given the transportation network, the eet of available vehicles, the demand and the supply of containers, the sailing time of vehicles, and the structure of costs, the objective of the model is to build a minimum cost service network design and container distribution plan that denes services, their departure and arrival times, as well as vehicle and container routing. The model is solved with a commercial solver and is tested on data instances inspired from real-world problems encountered by EU carrier companies. The results of the computational study show that in scheduled service networks direct routes happen more often when either the eet capacity is tight or the handling costs and the lead time interval increase. The increase of the same parameters leads to the decrease of the number of containers transshipped between vehicles

Integrated Supply Chain Network Design: Location, Transportation, Routing and Inventory Decisions

abstract: In this dissertation, an innovative framework for designing a multi-product integrated supply chain network is proposed. Multiple products are shipped from production facilities to retailers through a network of Distribution Centers (DCs). Each retailer has an independent, random demand for multiple products. The particular problem considered in this study also involves mixed-product transshipments between DCs with multiple truck size selection and routing delivery to retailers. Optimally solving such an integrated problem is in general not easy due to its combinatorial nature, especially when transshipments and routing are involved. In order to find out a good solution effectively, a two-phase solution methodology is derived: Phase I solves an integer programming model which includes all the constraints in the original model except that the routings are simplified to direct shipments by using estimated routing cost parameters. Then Phase II model solves the lower level inventory routing problem for each opened DC and its assigned retailers. The accuracy of the estimated routing cost and the effectiveness of the two-phase solution methodology are evaluated, the computational performance is found to be promising. The problem is able to be heuristically solved within a reasonable time frame for a broad range of problem sizes (one hour for the instance of 200 retailers). In addition, a model is generated for a similar network design problem considering direct shipment and consolidation within the same product set opportunities. A genetic algorithm and a specific problem heuristic are designed, tested and compared on several realistic scenarios.Dissertation/ThesisPh.D. Industrial Engineering 201

A multimodal network flow problem with product quality preservation, transshipment, and asset management

In this paper, we present an optimization model for a transportation planning problem with multiple transportation modes, highly perishable products, demand and supply dynamics, and management of the reusable transport units (RTIs). Such a problem arises in the European horticultural chain, for example. As a result of geographic dispersion of production and market, a reliable transportation solutions ensures long-term success in the European market. The model is an extension to the network ow problem. We integrate dynamic allocation, ow, and repositioning of the RTIs in order to nd the trade-o between quality requirements and operational considerations and costs. We also present detailed computational results and analysis

Modeling the Multicommodity Multimodal Routing Problem with Schedule-Based Services and Carbon Dioxide Emission Costs

We explore a freight routing problem wherein the aim is to assign optimal routes to move commodities through a multimodal transportation network. This problem belongs to the operational level of service network planning. The following formulation characteristics will be comprehensively considered: (1) multicommodity flow routing; (2) a capacitated multimodal transportation network with schedule-based rail services and time-flexible road services; (3) carbon dioxide emissions consideration; and (4) a generalized costs optimum oriented to customer demands. The specific planning of freight routing is thus defined as a capacitated time-sensitive multicommodity multimodal generalized shortest path problem. To solve this problem systematically, we first establish a node-arc-based mixed integer nonlinear programming model that combines the above formulation characteristics in a comprehensive manner. Then, we develop a linearization method to transform the proposed model into a linear one. Finally, a computational experiment from the Chinese inland container export business is presented to demonstrate the feasibility of the model and linearization method. The computational results indicate that implementing the proposed model and linearization method in the mathematical programming software Lingo can effectively solve the large-scale practical multicommodity multimodal transportation routing problem

AN INVENTORY ROUTING PROBLEM FOR DETERIORATING ITEMS WITH DYNAMIC DEMAND AND SPOILAGE RATE

Inventory routing problems (IRP) are among important tools to be used for implementing vendor manage inventory. Many researchers try to develop methods for solving inventory routing problem, however, only a few developed methods for inventory routing problems for spoilage items. In reality, many items are deteriorated and spoiled during transportation and storage period. In this paper, we developed a model and methodsto solve the inventory routing problem for deteriorating items with dynamic demand and spoilage rate, i.e., demand varies and items spoil during planning periods. Those cases are more realistic since many commodities such as fruits and vegetables have dynamic demand and spoilage rate. A Genetic Algorithm and Particle Swarm Optimization are developed to solve the problem with various demands in a specic planning period since the problem is Np-hard. A numerical example and sensitivity analysis are conducted to verify the model, and to get management insight it. The result is interesting and support general hypothesis that dynamic demands result in higher inventory cost than the static demands, and the increasing demand results in increasing inventory cost.mAlso, the results show that increasing demand and deteriorating rates signicantly affect the total cost, therefore, the developed model is important and signicantly useful to be used for solving IRP with dynamic demand and spoilage items