IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v187y2024ics1366554524001947.html
   My bibliography  Save this article

Dynamic container slot allocation with empty container repositioning under stochastic demand

Author

Listed:
  • Liang, Jinpeng
  • Ma, Zhongyuan
  • Wang, Shuang
  • Liu, Haitao
  • Tan, Zhijia

Abstract

Container slot allocation represents a critical operational decision-making challenge within the liner shipping industry, which necessitates making decisions on the transportation of loaded containers and the repositioning of empty ones under stochastic demand. We study novel dynamic allocation policy that leverage sequentially-revealed demand information to determine the slot allocation decision for both loaded and empty containers at each stage. In this paper, we develop a stochastic dynamic programming (DP) model to optimize the slot allocation decision for maximizing the expected total revenue over the planning horizon. To solve this model, we design an efficient allocation policy that makes slot allocations at each stage based on current empty container stocks, realized demand, and the mean demand at future stages. Comprehensive numerical experiments on both synthetic and realistic data demonstrate substantial revenue improvement of our approach over the commonly-used benchmark policies in practice and literature.

Suggested Citation

  • Liang, Jinpeng & Ma, Zhongyuan & Wang, Shuang & Liu, Haitao & Tan, Zhijia, 2024. "Dynamic container slot allocation with empty container repositioning under stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 187(C).
    • Handle: RePEc:eee:transe:v:187:y:2024:i:c:s1366554524001947
    DOI: 10.1016/j.tre.2024.103603
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554524001947
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2024.103603?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. Bell, Michael G.H. & Liu, Xin & Rioult, Jeremy & Angeloudis, Panagiotis, 2013. "A cost-based maritime container assignment model," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 58-70.
    2. Wang, Tingsong & Meng, Qiang & Tian, Xuecheng, 2024. "Dynamic container slot allocation for a liner shipping service," Transportation Research Part B: Methodological, Elsevier, vol. 179(C).
    3. Chen, Kang & Chen, Dongxu & Sun, Xueshan & Yang, Zhongzhen, 2016. "Container Ocean-transportation System Design with the factors of demand fluctuation and choice inertia of shippers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 95(C), pages 267-281.
    4. Liang, Jinpeng & Li, Liming & Zheng, Jianfeng & Tan, Zhijia, 2023. "Service-oriented container slot allocation policy under stochastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 176(C).
    5. Chen, Rongying & Dong, Jing-Xin & Lee, Chung-Yee, 2016. "Pricing and competition in a shipping market with waste shipments and empty container repositioning," Transportation Research Part B: Methodological, Elsevier, vol. 85(C), pages 32-55.
    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. 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.
    8. Meng, Qiang & Wang, Shuaian, 2011. "Liner shipping service network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(5), pages 695-708, September.
    9. Wang, Yadong & Meng, Qiang & Du, Yuquan, 2015. "Liner container seasonal shipping revenue management," Transportation Research Part B: Methodological, Elsevier, vol. 82(C), pages 141-161.
    10. Sebastian Zurheide & Kathrin Fischer, 2011. "A Revenue Management Slot Allocation Model with Prioritization for the Liner Shipping Industry," Operations Research Proceedings, in: Bo Hu & Karl Morasch & Stefan Pickl & Markus Siegle (ed.), Operations Research Proceedings 2010, pages 143-148, Springer.
    11. 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.
    12. Wang, Tingsong & Meng, Qiang & Wang, Shuaian & Qu, Xiaobo, 2021. "A two-stage stochastic nonlinear integer-programming model for slot allocation of a liner container shipping service," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 143-160.
    13. Christiansen, Marielle & Hellsten, Erik & Pisinger, David & Sacramento, David & Vilhelmsen, Charlotte, 2020. "Liner shipping network design," European Journal of Operational Research, Elsevier, vol. 286(1), pages 1-20.
    14. Wang, Tingsong & Tian, Xuecheng & Wang, Yadong, 2020. "Container slot allocation and dynamic pricing of time-sensitive cargoes considering port congestion and uncertain demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    15. 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.
    16. Wang, Yadong & Gu, Yuyun & Wang, Tingsong & Zhang, Jun, 2022. "A risk-averse approach for joint contract selection and slot allocation in liner container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    17. Meng, Qiang & Zhao, Hui & Wang, Yadong, 2019. "Revenue management for container liner shipping services: Critical review and future research directions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 280-292.
    18. Chang, Hwan & Jula, Hossein & Chassiakos, Anastasios & Ioannou, Petros, 2008. "A heuristic solution for the empty container substitution problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(2), pages 203-216, March.
    19. Chia-hui Chang & Lawrence W Lan & Mee Lee, 2015. "An integrated container management model for optimizing slot allocation plan and empty container repositioning," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 17(3), pages 315-340, September.
    20. Bell, Michael G.H. & Liu, Xin & Angeloudis, Panagiotis & Fonzone, Achille & Hosseinloo, Solmaz Haji, 2011. "A frequency-based maritime container assignment model," Transportation Research Part B: Methodological, Elsevier, vol. 45(8), pages 1152-1161, September.
    21. Hui Zhao & Qiang Meng & Yadong Wang, 2022. "Robust container slot allocation with uncertain demand for liner shipping services," Flexible Services and Manufacturing Journal, Springer, vol. 34(3), pages 551-579, September.
    22. Wang, Xinchang, 2016. "Stochastic resource allocation for containerized cargo transportation networks when capacities are uncertain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 334-357.
    23. von Westarp, A. Graf & Schinas, O., 2016. "A fuzzy approach for container positioning considering sustainable profit optimization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 92(C), pages 56-66.
    24. 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.
    25. Wang, Tingsong & Xing, Zheng & Hu, Hongtao & Qu, Xiaobo, 2019. "Overbooking and delivery-delay-allowed strategies for container slot allocation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 433-447.
    26. Lee, Sangyoon & Moon, Ilkyeong, 2020. "Robust empty container repositioning considering foldable containers," European Journal of Operational Research, Elsevier, vol. 280(3), pages 909-925.
    27. 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.
    28. Sebastian Zurheide & Kathrin Fischer, 2012. "A revenue management slot allocation model for liner shipping networks," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(3), pages 334-361, September.
    29. 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.
    Full references (including those not matched with items on IDEAS)

    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. Liang, Jinpeng & Li, Liming & Zheng, Jianfeng & Tan, Zhijia, 2023. "Service-oriented container slot allocation policy under stochastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 176(C).
    2. Wang, Tingsong & Meng, Qiang & Tian, Xuecheng, 2024. "Dynamic container slot allocation for a liner shipping service," Transportation Research Part B: Methodological, Elsevier, vol. 179(C).
    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. 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.
    5. Wang, Yadong & Gu, Yuyun & Wang, Tingsong & Zhang, Jun, 2022. "A risk-averse approach for joint contract selection and slot allocation in liner container shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    6. 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.
    7. 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.
    8. Qiaoyu Peng & Chuanxu Wang, 2022. "Ship space sharing strategies with different rental modes: How does NVOCCs cooperate with booking platform?," Operational Research, Springer, vol. 22(3), pages 3003-3035, July.
    9. Wang, Tingsong & Tian, Xuecheng & Wang, Yadong, 2020. "Container slot allocation and dynamic pricing of time-sensitive cargoes considering port congestion and uncertain demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    10. 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).
    11. 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.
    12. Wang, Tingsong & Meng, Qiang & Wang, Shuaian & Qu, Xiaobo, 2021. "A two-stage stochastic nonlinear integer-programming model for slot allocation of a liner container shipping service," Transportation Research Part B: Methodological, Elsevier, vol. 150(C), pages 143-160.
    13. Zheng, Jianfeng & Sun, Zhuo & Zhang, Fangjun, 2016. "Measuring the perceived container leasing prices in liner shipping network design with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 94(C), pages 123-140.
    14. Kolar, Petr & Schramm, Hans-Joachim & Prockl, Günter, 2018. "Intermodal transport and repositioning of empty containers in Central and Eastern Europe hinterland," Journal of Transport Geography, Elsevier, vol. 69(C), pages 73-82.
    15. 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.
    16. Tingsong Wang & Jiawei Liu & Yadong Wang & Yong Jin & Shuaian Wang, 2024. "Dynamic Flexible Allocation of Slots in Container Line Transport," Sustainability, MDPI, vol. 16(21), pages 1-23, October.
    17. 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.
    18. 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.
    19. Mevlut Savas Bilican & Çağatay Iris & Mumtaz Karatas, 2024. "A collaborative decision support framework for sustainable cargo composition in container shipping services," Annals of Operations Research, Springer, vol. 342(1), pages 79-111, November.
    20. Sun, Qinghe & Li, Wei & Meng, Qiang, 2024. "Single-leg shipping revenue management for expedited services with ambiguous elasticity in transit-time-sensitive demand," Transportation Research Part B: Methodological, Elsevier, vol. 180(C).

    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:transe:v:187:y:2024:i:c:s1366554524001947. 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/600244/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.