A dual-response forwarding approach for containerizing air cargoes under uncertainty, based on stochastic mixed 0-1 programming

Yue Wu

European Journal of Operational Research, 2010, vol. 207, issue 1, 152-164

Abstract: This paper proposes a dual-response forwarding approach for renting air containers and simultaneously determining how cargoes are distributed into the containers under uncertain information. Containers have to be booked in advance to obtain a discount rental rate from airlines, as urgent requirement or cancellation of containers on the day of shipping will incur a heavy penalty. We firstly formulate a mixed 0-1 integer model to determine the booking types and quantities of containers for the deterministic problem under accurate information. We then formulate a stochastic mixed 0-1 model to structure a dual-response forwarding system for the uncertain problem where accurate information is not available when booking. The first-stage response is to determine the booking types and quantities of containers. The second-stage response is to prepare for different scenarios that might occur on the day of shipping, including the types and quantities of containers required or returned for each scenario, and also the corresponding cargo loading plan. Computational results show that the stochastic model can provide a cost-efficient, flexible and responsive cargo forwarding system.

Keywords: Air; transport; Cargo; forwarding; Globalization; Logistics; Stochastic; programming (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:207:y:2010:i:1:p:152-164

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