Characterizing optimal empty container reposition policy in periodic-review shuttle service systems

Song D-P ()
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Song D-P: University of Plymouth

Journal of the Operational Research Society, 2007, vol. 58, issue 1, 122-133

Abstract: Abstract This paper considers a periodic-review shuttle service system with random customer demands and finite reposition capacity. The objective is to find the optimal stationary policy of empty container reposition by minimizing the sum of container leasing cost, inventory cost and reposition cost. Using Markov decision process approach, the structures of the optimal stationary policies for both expected discounted cost and long-run average cost are completely characterized. Monotonic and asymptotic behaviours of the optimal policy are established. By taking advantage of special structure of the optimal policy, the stationary distribution of the system states is obtained, which is then used to compute interesting steady-state performance measures and implement the optimal policy. Numerical examples are given to demonstrate the results.

Keywords: Transport; empty container reposition; inventory control; dynamic programming; stationary distribution; optimization (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (9)

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DOI: 10.1057/palgrave.jors.2602150

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