IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v42y2013i1p50-60.html
   My bibliography  Save this article

Determining optimal inland-empty-container depot locations under stochastic demand

Author

Listed:
  • Mittal, Neha
  • Boile, Maria
  • Baveja, Alok
  • Theofanis, Sotiris

Abstract

Maritime freight volumes fluctuate with changes in consumer demand and global economies. In this paper we analyze the stochasticity in the container trade volumes and perform a two-stage stochastic analysis with recourse to determine an optimal set of inland depots to be opened within a 10-year time horizon. The work builds on our previous effort that introduced the concept of an ‘Inland-Depots-for-Empty-Containers’ (IDEC) system for effective regional repositioning of empty containers. We evaluate the proposed approach by performing a case study based on the port region of New York/New Jersey. Results obtained demonstrate greater expected benefit from the proposed approach as compared to the corresponding deterministic or single-stage stochastic models.

Suggested Citation

  • Mittal, Neha & Boile, Maria & Baveja, Alok & Theofanis, Sotiris, 2013. "Determining optimal inland-empty-container depot locations under stochastic demand," Research in Transportation Economics, Elsevier, vol. 42(1), pages 50-60.
  • Handle: RePEc:eee:retrec:v:42:y:2013:i:1:p:50-60
    DOI: 10.1016/j.retrec.2012.11.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885912001680
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.retrec.2012.11.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Tancrez, Jean-Sébastien & Lange, Jean-Charles & Semal, Pierre, 2012. "A location-inventory model for large three-level supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 485-502.
    2. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    3. Teodor Gabriel Crainic & Michel Gendreau & Pierre Dejax, 1993. "Dynamic and Stochastic Models for the Allocation of Empty Containers," Operations Research, INFORMS, vol. 41(1), pages 102-126, February.
    4. Alan L. Erera & Juan C. Morales & Martin Savelsbergh, 2009. "Robust Optimization for Empty Repositioning Problems," Operations Research, INFORMS, vol. 57(2), pages 468-483, April.
    5. Di Francesco, Massimo & Crainic, Teodor Gabriel & Zuddas, Paola, 2009. "The effect of multi-scenario policies on empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(5), pages 758-770, September.
    6. Dong, Jing-Xin & Song, Dong-Ping, 2009. "Container fleet sizing and empty repositioning in liner shipping systems," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(6), pages 860-877, November.
    7. Crainic, Teodor Gabriel & Laporte, Gilbert, 1997. "Planning models for freight transportation," European Journal of Operational Research, Elsevier, vol. 97(3), pages 409-438, March.
    8. Kris Braekers & Gerrit Janssens & An Caris, 2011. "Challenges in Managing Empty Container Movements at Multiple Planning Levels," Transport Reviews, Taylor & Francis Journals, vol. 31(6), pages 681-708.
    9. Owen, Susan Hesse & Daskin, Mark S., 1998. "Strategic facility location: A review," European Journal of Operational Research, Elsevier, vol. 111(3), pages 423-447, December.
    10. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    11. Palekar, Udatta S. & Batta, Rajan & Bosch, Robert M. & Elhence, Sharad, 1992. "Modeling uncertainties in plant layout problems," European Journal of Operational Research, Elsevier, vol. 63(2), pages 347-359, December.
    12. Raymond K. Cheung & Chuen-Yih Chen, 1998. "A Two-Stage Stochastic Network Model and Solution Methods for the Dynamic Empty Container Allocation Problem," Transportation Science, INFORMS, vol. 32(2), pages 142-162, May.
    13. Lei, Ting L. & Church, Richard L., 2011. "Locating short-term empty-container storage facilities to support port operations: A user optimal approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 738-754, September.
    14. Arnt-Gunnar Lium & Teodor Gabriel Crainic & Stein W. Wallace, 2009. "A Study of Demand Stochasticity in Service Network Design," Transportation Science, INFORMS, vol. 43(2), pages 144-157, May.
    15. Jula, Hossein & Chassiakos, Anastasios & Ioannou, Petros, 2006. "Port dynamic empty container reuse," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 42(1), pages 43-60, January.
    16. Young Yun, Won & Mi Lee, Yu & Seok Choi, Yong, 2011. "Optimal inventory control of empty containers in inland transportation system," International Journal of Production Economics, Elsevier, vol. 133(1), pages 451-457, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kuzmicz, Katarzyna Anna & Pesch, Erwin, 2019. "Approaches to empty container repositioning problems in the context of Eurasian intermodal transportation," Omega, Elsevier, vol. 85(C), pages 194-213.
    2. Shan, Wenxuan & Peng, Zixuan & Liu, Jiaming & Yao, Baozhen & Yu, Bin, 2020. "An exact algorithm for inland container transportation network design," Transportation Research Part B: Methodological, Elsevier, vol. 135(C), pages 41-82.
    3. Alaa Abdelshafie & May Salah & Tomaž Kramberger & Dejan Dragan, 2022. "Repositioning and Optimal Re-Allocation of Empty Containers: A Review of Methods, Models, and Applications," Sustainability, MDPI, vol. 14(11), pages 1-23, May.
    4. Hjortnaes, T. & Wiegmans, B. & Negenborn, R.R. & Zuidwijk, R.A. & Klijnhout, R., 2017. "Minimizing cost of empty container repositioning in port hinterlands, while taking repair operations into account," Journal of Transport Geography, Elsevier, vol. 58(C), pages 209-219.
    5. Numa-Navarro, Ian & Wilmsmeier, Gordon & Gil, Cristiam, 2023. "Improving empty container management using street-turn: A case study of the Colombian logistics network," Journal of Transport Geography, Elsevier, vol. 112(C).
    6. Amir Gharehgozli & Nima Zaerpour & Rene Koster, 2020. "Container terminal layout design: transition and future," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(4), pages 610-639, December.
    7. Jeong, Yoonjea & Saha, Subrata & Chatterjee, Debajyoti & Moon, Ilkyeong, 2018. "Direct shipping service routes with an empty container management strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 123-142.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xing, Xinjie & Drake, Paul R. & Song, Dongping & Zhou, Yang, 2019. "Tank Container Operators’ profit maximization through dynamic operations planning integrated with the quotation-booking process under multiple uncertainties," European Journal of Operational Research, Elsevier, vol. 274(3), pages 924-946.
    2. Zheng, Jianfeng & Sun, Zhuo & Gao, Ziyou, 2015. "Empty container exchange among liner carriers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 158-169.
    3. Alaa Abdelshafie & May Salah & Tomaž Kramberger & Dejan Dragan, 2022. "Repositioning and Optimal Re-Allocation of Empty Containers: A Review of Methods, Models, and Applications," Sustainability, MDPI, vol. 14(11), pages 1-23, May.
    4. Dongping Song, 2021. "A Literature Review, Container Shipping Supply Chain: Planning Problems and Research Opportunities," Logistics, MDPI, vol. 5(2), pages 1-26, June.
    5. Kuzmicz, Katarzyna Anna & Pesch, Erwin, 2019. "Approaches to empty container repositioning problems in the context of Eurasian intermodal transportation," Omega, Elsevier, vol. 85(C), pages 194-213.
    6. Jia Shu & Miao Song, 2014. "Dynamic Container Deployment: Two-Stage Robust Model, Complexity, and Computational Results," INFORMS Journal on Computing, INFORMS, vol. 26(1), pages 135-149, February.
    7. Lee, Chung-Yee & Song, Dong-Ping, 2017. "Ocean container transport in global supply chains: Overview and research opportunities," Transportation Research Part B: Methodological, Elsevier, vol. 95(C), pages 442-474.
    8. Yi Zhao & Qingwan Xue & Xi Zhang, 2018. "Stochastic Empty Container Repositioning Problem with CO 2 Emission Considerations for an Intermodal Transportation System," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    9. Long, Yin & Lee, Loo Hay & Chew, Ek Peng, 2012. "The sample average approximation method for empty container repositioning with uncertainties," European Journal of Operational Research, Elsevier, vol. 222(1), pages 65-75.
    10. Numa-Navarro, Ian & Wilmsmeier, Gordon & Gil, Cristiam, 2023. "Improving empty container management using street-turn: A case study of the Colombian logistics network," Journal of Transport Geography, Elsevier, vol. 112(C).
    11. Schuster Puga, Matías & Tancrez, Jean-Sébastien, 2017. "A heuristic algorithm for solving large location–inventory problems with demand uncertainty," European Journal of Operational Research, Elsevier, vol. 259(2), pages 413-423.
    12. Goh, Shao Hung & Chan, Yuxian, 2016. "Operational shadow pricing in back haul container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 92(C), pages 3-15.
    13. Wong, Eugene Y.C. & Tai, Allen H. & Raman, Mardjuki, 2015. "A maritime container repositioning yield-based optimization model with uncertain upsurge demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 147-161.
    14. Dessouky, Maged & Carvajal, Santiago & Yao, Siyuan, 2020. "Congestion Reduction Through Efficient Empty Container Movement Under Stochastic Demand," Institute of Transportation Studies, Working Paper Series qt34c676k1, Institute of Transportation Studies, UC Davis.
    15. Najafi, Mehdi & Zolfagharinia, Hossein, 2021. "Pricing and quality setting strategy in maritime transportation: Considering empty repositioning and demand uncertainty," International Journal of Production Economics, Elsevier, vol. 240(C).
    16. Song, Dong-Ping & Dong, Jing-Xin, 2012. "Cargo routing and empty container repositioning in multiple shipping service routes," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1556-1575.
    17. Li, Ling & Wang, Bin & Cook, David P., 2015. "Reprint of “Enhancing green supply chain initiatives via empty container reuse”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 109-123.
    18. Ksciuk, Jana & Kuhlemann, Stefan & Tierney, Kevin & Koberstein, Achim, 2023. "Uncertainty in maritime ship routing and scheduling: A Literature review," European Journal of Operational Research, Elsevier, vol. 308(2), pages 499-524.
    19. Jahn, Carlos & Schlingmeier, Johannes, 2014. "Cooperation in Empty Container Logistics," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Blecker, Thorsten & Kersten, Wolfgang & Ringle, Christian M. (ed.), Innovative Methods in Logistics and Supply Chain Management: Current Issues and Emerging Practices. Proceedings of the Hamburg International Conferenc, volume 19, pages 499-514, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    20. Li, Ling & Wang, Bin & Cook, David P., 2014. "Enhancing green supply chain initiatives via empty container reuse," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 190-204.

    More about this item

    Keywords

    Empty equipment fleet management; Empty container repositioning; ‘Inland-Depots-for-Empty-Containers’ (IDEC) system; Facility location problem; Two-stage stochastic analysis with recourse; Scenario planning; Demand uncertainty;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:42:y:2013:i:1:p:50-60. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.