A decision support methodology for strategic planning in maritime transportation

Kjetil Fagerholt, Marielle Christiansen, Lars Magnus Hvattum, Trond A.V. Johnsen and Thor J. Vabø

Omega, 2010, vol. 38, issue 6, 465-474

Abstract: This paper presents a decision support methodology for strategic planning in tramp and industrial shipping. The proposed methodology combines simulation and optimization, where a Monte Carlo simulation framework is built around an optimization-based decision support system for short-term routing and scheduling. The simulation proceeds by considering a series of short-term routing and scheduling problems using a rolling horizon principle where information is revealed as time goes by. The approach is flexible in the sense that it can easily be configured to provide decision support for a wide range of strategic planning problems, such as fleet size and mix problems, analysis of long-term contracts and contract terms. The methodology is tested on a real case for a major Norwegian shipping company. The methodology provided valuable decision support on important strategic planning problems for the shipping company.

Keywords: Routing; Decision; support; systems; Heuristics; Simulation; Case; study (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (22)

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