 Analysis of three container routing strategiesLu Zhen, Shuaian Wang and Dan Zhuge International Journal of Production Economics, 2017, vol. 193, issue C, 259-271 Abstract: As containers need several weeks to be delivered to their destinations and the future container shipment demand is uncertain, a myopic strategy for container routing that maximizes the immediate profit may lead to insufficient remaining capacity for transporting more profitable containers in the future. This study conducts a theoretical analysis to compare three container routing strategies, i.e., (i) a widely used myopic strategy, (ii) a non-myopic heuristic routing strategy that incorporates information about the future demand distribution, and (iii) a strategy that assumes future demand is known. Then a practical non-myopic heuristic container routing strategy is developed for practical purposes to increase the profit of liner shipping companies. Extensive numerical experiments show that the proposed non-myopic heuristic container routing strategy brings in an extra of 2%–3% profit over the myopic strategy. Keywords: Container routing; Stochastic demand; Liner shipping; Myopic strategy; Non-myopic heuristic routing strategy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:193:y:2017:i:c:p:259-271 DOI: 10.1016/j.ijpe.2017.07.011 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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