Uncertainty in Fleet Renewal: A Case from Maritime Transportation

Giovanni Pantuso (), Kjetil Fagerholt () and Stein Wallace
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Giovanni Pantuso: Technical University of Denmark, DK-4000 Roskilde, Denmark; and Norwegian University of Science and Technology, NO-7491 Trondheim, Norway
Kjetil Fagerholt: Norwegian University of Science and Technology, NO-7491 Trondheim, Norway; and Norwegian Marine Technology Research Institute, NO-7450 Trondheim, Norway

Transportation Science, 2016, vol. 50, issue 2, 390-407

Abstract: This paper addresses the fleet renewal problem and particularly the treatment of uncertainty in the maritime case. A stochastic programming model for the maritime fleet renewal problem is presented. The main contribution is that of assessing whether or not better decisions can be achieved by using stochastic programming rather than employing a deterministic model and using average data. Elements increasing the relevance of uncertainty are also investigated. Tests performed on the case of Wallenius Wilhelmsen Logistics, a major liner shipping company, show that solutions to the model we present perform noticeably better than solutions obtained using average values.

Keywords: fleet size and mix; fleet planning; liner shipping; stochastic programming; rolling equipment (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ortrsc:v:50:y:2016:i:2:p:390-407

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