Integrated strategic and operational planning of dry port container networks in a stochastic environment

Kamran Sarmadi, Mehdi Amiri-Aref, Jing-Xin Dong and Christian Hicks

Transportation Research Part B: Methodological, 2020, vol. 139, issue C, 132-164

Abstract: This paper proposes a dry port network design model that integrates strategic and operational decision taking into account the stochastic nature of demand. The proposed model represents the forward and backward flows of both laden and empty containers as well as the inventory levels of empty containers throughout the network. This problem is formulated as a two-stage stochastic programming model where the dynamic decisions relating to containers’ transportation and inventory are integrated with decisions that determine the number and location-allocation of dry ports in an uncertain environment. For solving this problem, a robust sample average approximation method enhanced with Benders decomposition algorithm which is accelerated by multi-cut framework, knapsack inequalities, and Pareto-optimal cut scheme is proposed. The model was tested using a hypothetical case relating to the design of a hinterland container shipping network in North Carolina, USA, that comprises a seaport and fifty manufacturing companies. The quality of solutions obtained was evaluated through extensive numerical experiments. The experimental results underline the sensitivity of network configuration and operational decisions to inventory holding costs and solution robustness. We also provide managerial insights that may lead to improvements in the network configuration, modality choice, service level, fill rate, and inventory turnover in container shipping industry.

Keywords: Dry port; Container shipping; Network design; Stochastic programming; Robust optimisation (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S019126152030343X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transb:v:139:y:2020:i:c:p:132-164

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.trb.2020.06.002

Access Statistics for this article

Transportation Research Part B: Methodological is currently edited by Fred Mannering

More articles in Transportation Research Part B: Methodological from Elsevier
Bibliographic data for series maintained by Catherine Liu ().