Flexibility in Port Selection: A Quantitative Approach Using Floating Stocks

Abstract

Ports provide a number of logistical choices concerning storage, onward transport, and postponement. We investigatethe routing flexibility offered by ports with a central location with respect to the hinterland. This flexibilityis investigated using an illustrative case in which a number of alternative strategies are evaluated by means ofsimulation. Detailed cost data was used for the illustrative case. The combination of a simulation model anddetailed cost data allows us to quantify the value of the rerouting flexibility. A combination of using regionaldistribution centers and a European Distribution Center results in the lowest cost per container.supply chain;floating stock;intermodal transport;inventories;port selection