IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v60y2013icp1-12.html
   My bibliography  Save this article

Risk management in liner ship fleet deployment: A joint chance constrained programming model

Author

Listed:
  • Wang, Tingsong
  • Meng, Qiang
  • Wang, Shuaian
  • Tan, Zhijia

Abstract

This paper provides a tangible methodology to deal with the liner ship fleet deployment problem aiming at minimizing the total cost while maintaining a service level under uncertain container demand. The problem is first formulated as a joint chance constrained programming model, and the sample average approximation method and mixed-integer programming are used to deal with it. Finally, a numerical example of a liner shipping network is carried out to verify the applicability of the proposed model and solution algorithm. It is found that the service level has significant effect on the total cost.

Suggested Citation

  • Wang, Tingsong & Meng, Qiang & Wang, Shuaian & Tan, Zhijia, 2013. "Risk management in liner ship fleet deployment: A joint chance constrained programming model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 60(C), pages 1-12.
    • Handle: RePEc:eee:transe:v:60:y:2013:i:c:p:1-12
    DOI: 10.1016/j.tre.2013.09.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554513001555
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2013.09.001?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. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship fleet deployment with container transshipment operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 470-484.
    2. Bruce L. Miller & Harvey M. Wagner, 1965. "Chance Constrained Programming with Joint Constraints," Operations Research, INFORMS, vol. 13(6), pages 930-945, December.
    3. A. Charnes & W. W. Cooper, 1959. "Chance-Constrained Programming," Management Science, INFORMS, vol. 6(1), pages 73-79, October.
    4. B. J. Powell & A .N. Perkins, 1997. "Fleet deployment optimization for liner shipping: an integer programming model," Maritime Policy & Management, Taylor & Francis Journals, vol. 24(2), pages 183-192, January.
    5. Shintani, Koichi & Imai, Akio & Nishimura, Etsuko & Papadimitriou, Stratos, 2007. "The container shipping network design problem with empty container repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(1), pages 39-59, January.
    6. Qiang Meng & Tingsong Wang, 2010. "A chance constrained programming model for short-term liner ship fleet planning problems," Maritime Policy & Management, Taylor & Francis Journals, vol. 37(4), pages 329-346, July.
    7. L. Jeff Hong & Yi Yang & Liwei Zhang, 2011. "Sequential Convex Approximations to Joint Chance Constrained Programs: A Monte Carlo Approach," Operations Research, INFORMS, vol. 59(3), pages 617-630, June.
    8. Gelareh, Shahin & Meng, Qiang, 2010. "A novel modeling approach for the fleet deployment problem within a short-term planning horizon," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(1), pages 76-89, January.
    9. ,, 2000. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 16(2), pages 287-299, April.
    10. A. Charnes & W. W. Cooper & G. H. Symonds, 1958. "Cost Horizons and Certainty Equivalents: An Approach to Stochastic Programming of Heating Oil," Management Science, INFORMS, vol. 4(3), pages 235-263, April.
    11. Meng, Qiang & Wang, Tingsong, 2011. "A scenario-based dynamic programming model for multi-period liner ship fleet planning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(4), pages 401-413, July.
    12. 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.
    13. Ronen, David, 1993. "Ship scheduling: The last decade," European Journal of Operational Research, Elsevier, vol. 71(3), pages 325-333, December.
    14. Qi, Xiangtong & Song, Dong-Ping, 2012. "Minimizing fuel emissions by optimizing vessel schedules in liner shipping with uncertain port times," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(4), pages 863-880.
    15. B. K. Pagnoncelli & S. Ahmed & A. Shapiro, 2009. "Sample Average Approximation Method for Chance Constrained Programming: Theory and Applications," Journal of Optimization Theory and Applications, Springer, vol. 142(2), pages 399-416, August.
    16. Marielle Christiansen & Kjetil Fagerholt & David Ronen, 2004. "Ship Routing and Scheduling: Status and Perspectives," Transportation Science, INFORMS, vol. 38(1), pages 1-18, February.
    17. Ronen, David, 1983. "Cargo ships routing and scheduling: Survey of models and problems," European Journal of Operational Research, Elsevier, vol. 12(2), pages 119-126, February.
    18. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    19. Meng, Qiang & Wang, Shuaian, 2012. "Liner ship fleet deployment with week-dependent container shipment demand," European Journal of Operational Research, Elsevier, vol. 222(2), pages 241-252.
    20. Adland, Roar & Jia, Haiying, 2008. "Charter market default risk: A conceptual approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(1), pages 152-163, January.
    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. Sun, Xuting & Chung, Sai-Ho & Choi, Tsan-Ming & Sheu, Jiuh-Biing & Ma, Hoi Lam, 2020. "Combating lead-time uncertainty in global supply chain's shipment-assignment: Is it wise to be risk-averse?," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 406-434.
    2. E. Zhang & Feng Chu & Shijin Wang & Ming Liu & Yang Sui, 2022. "Approximation approach for robust vessel fleet deployment problem with ambiguous demands," Journal of Combinatorial Optimization, Springer, vol. 44(4), pages 2180-2194, November.
    3. Ng, ManWo, 2017. "Revisiting a class of liner fleet deployment models," European Journal of Operational Research, Elsevier, vol. 257(3), pages 773-776.
    4. Ng, ManWo, 2015. "Container vessel fleet deployment for liner shipping with stochastic dependencies in shipping demand," Transportation Research Part B: Methodological, Elsevier, vol. 74(C), pages 79-87.
    5. Wang, Shuaian, 2014. "A novel hybrid-link-based container routing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 165-175.
    6. Wetzel, Daniel & Tierney, Kevin, 2020. "Integrating fleet deployment into liner shipping vessel repositioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    7. Ng, ManWo, 2014. "Distribution-free vessel deployment for liner shipping," European Journal of Operational Research, Elsevier, vol. 238(3), pages 858-862.
    8. E. Zhang & Feng Chu & Shijin Wang & Ming Liu & Yang Sui, 0. "Approximation approach for robust vessel fleet deployment problem with ambiguous demands," Journal of Combinatorial Optimization, Springer, vol. 0, pages 1-15.
    9. Mihaela Bukljaš & Kristijan Rogić & Vladimir Jerebić, 2022. "Distributionally Robust Model and Metaheuristic Frame for Liner Ships Fleet Deployment," Sustainability, MDPI, vol. 14(9), pages 1-18, May.
    10. Fischer, Andreas & Nokhart, Håkon & Olsen, Henrik & Fagerholt, Kjetil & Rakke, Jørgen Glomvik & Stålhane, Magnus, 2016. "Robust planning and disruption management in roll-on roll-off liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 51-67.
    11. 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).
    12. Sun, X.T. & Chung, S.H. & Chan, Felix T.S. & Wang, Zheng, 2018. "The impact of liner shipping unreliability on the production–distribution scheduling of a decentralized manufacturing system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 114(C), pages 242-269.
    13. Lai, Xiaofan & Wu, Lingxiao & Wang, Kai & Wang, Fan, 2022. "Robust ship fleet deployment with shipping revenue management," Transportation Research Part B: Methodological, Elsevier, vol. 161(C), pages 169-196.
    14. 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.
    15. Yi Zhao & Ronghui Liu & Xi Zhang & Anthony Whiteing, 2018. "A chance-constrained stochastic approach to intermodal container routing problems," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-22, February.
    16. Wang, Xin & Fagerholt, Kjetil & Wallace, Stein W., 2018. "Planning for charters: A stochastic maritime fleet composition and deployment problem," Omega, Elsevier, vol. 79(C), pages 54-66.
    17. Demir, Emrah & Burgholzer, Wolfgang & Hrušovský, Martin & Arıkan, Emel & Jammernegg, Werner & Woensel, Tom Van, 2016. "A green intermodal service network design problem with travel time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 789-807.

    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. Wang, Hua & Wang, Shuaian & Meng, Qiang, 2014. "Simultaneous optimization of schedule coordination and cargo allocation for liner container shipping networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 261-273.
    2. Qiang Meng & Shuaian Wang & Henrik Andersson & Kristian Thun, 2014. "Containership Routing and Scheduling in Liner Shipping: Overview and Future Research Directions," Transportation Science, INFORMS, vol. 48(2), pages 265-280, May.
    3. Meng, Qiang & Wang, Shuaian, 2012. "Liner ship fleet deployment with week-dependent container shipment demand," European Journal of Operational Research, Elsevier, vol. 222(2), pages 241-252.
    4. Wang, Shuaian & Meng, Qiang & Bell, Michael G.H., 2013. "Liner ship route capacity utilization estimation with a bounded polyhedral container shipment demand pattern," Transportation Research Part B: Methodological, Elsevier, vol. 47(C), pages 57-76.
    5. Zhen, Lu & Hu, Yi & Wang, Shuaian & Laporte, Gilbert & Wu, Yiwei, 2019. "Fleet deployment and demand fulfillment for container shipping liners," Transportation Research Part B: Methodological, Elsevier, vol. 120(C), pages 15-32.
    6. Wang, Shuaian & Meng, Qiang & Sun, Zhuo, 2013. "Container routing in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 49(1), pages 1-7.
    7. Qiang Meng & Tingsong Wang & Shuaian Wang, 2015. "Multi-period liner ship fleet planning with dependent uncertain container shipment demand," Maritime Policy & Management, Taylor & Francis Journals, vol. 42(1), pages 43-67, January.
    8. Meng, Qiang & Wang, Tingsong & Wang, Shuaian, 2012. "Short-term liner ship fleet planning with container transshipment and uncertain container shipment demand," European Journal of Operational Research, Elsevier, vol. 223(1), pages 96-105.
    9. Manuel Herrera & Per J. Agrell & Casiano Manrique-de-Lara-Peñate & Lourdes Trujillo, 2017. "Vessel capacity restrictions in the fleet deployment problem: an application to the Panama Canal," Annals of Operations Research, Springer, vol. 253(2), pages 845-869, June.
    10. Christiansen, Marielle & Fagerholt, Kjetil & Nygreen, Bjørn & Ronen, David, 2013. "Ship routing and scheduling in the new millennium," European Journal of Operational Research, Elsevier, vol. 228(3), pages 467-483.
    11. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    12. 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.
    13. Wang, Shuaian, 2013. "Essential elements in tactical planning models for container liner shipping," Transportation Research Part B: Methodological, Elsevier, vol. 54(C), pages 84-99.
    14. Zheng, Jianfeng & Qi, Jingwen & Sun, Zhuo & Li, Feng, 2018. "Community structure based global hub location problem in liner shipping," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 1-19.
    15. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship fleet deployment with container transshipment operations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 470-484.
    16. Wang, Shuaian & Meng, Qiang, 2012. "Robust schedule design for liner shipping services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(6), pages 1093-1106.
    17. Dong, Jing-Xin & Lee, Chung-Yee & Song, Dong-Ping, 2015. "Joint service capacity planning and dynamic container routing in shipping network with uncertain demands," Transportation Research Part B: Methodological, Elsevier, vol. 78(C), pages 404-421.
    18. Zheng, Jianfeng & Meng, Qiang & Sun, Zhuo, 2015. "Liner hub-and-spoke shipping network design," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 32-48.
    19. Nguyen Khoi Tran & Hans-Dietrich Haasis & Tobias Buer, 2017. "Container shipping route design incorporating the costs of shipping, inland/feeder transport, inventory and CO2 emission," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 19(4), pages 667-694, December.
    20. Wang, Shuaian, 2014. "A novel hybrid-link-based container routing model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 165-175.

    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:60:y:2013:i:c:p:1-12. 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.