Bulk ship fleet renewal and deployment under uncertainty: A multi-stage stochastic programming approach

Ayşe N. Arslan and Dimitri J. Papageorgiou

Transportation Research Part E: Logistics and Transportation Review, 2017, vol. 97, issue C, 69-96

Abstract: Faced with simultaneous demand and charter cost uncertainty, an industrial shipping company must determine a suitable fleet size, mix, and deployment strategy to satisfy demand. It acquires vessels by time chartering and voyage chartering. Time chartered vessels are acquired for different durations, a decision made before stochastic parameters are known. Voyage charters are procured for a single voyage after uncertain parameters are realized. We introduce the first multi-stage stochastic programming model for the bulk ship fleet renewal problem and solve it in a rolling horizon fashion. Computational results indicate that our approach outperforms traditional methods relying on expected value forecasts.

Keywords: Chartering; Fleet planning; Fleet renewal; Maritime transportation; Mixed-integer linear programming; Multi-stage stochastic programming (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (13)

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DOI: 10.1016/j.tre.2016.10.009

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