IDEAS home Printed from https://ideas.repec.org/a/ids/ijores/v6y2009i2p195-222.html
   My bibliography  Save this article

A revenue management model for sea cargo

Author

Listed:
  • L.H. Lee
  • E.P. Chew
  • M.S. Sim

Abstract

In this paper, we introduce a revenue management model for an ocean carrier with two classes of orders, namely the ad hoc orders and the contractual orders. When the contractual order is accepted, the carrier can either deliver it immediately or postpone to the next ship on the shipping schedule. This problem is formulated as a stochastic dynamic programming model. We show the existence of the optimal threshold policy. Some important properties of the threshold policy are discussed. Finally, the numerical result shows that the percentage improvement of the threshold policy over an existing policy may be as high as 199%.

Suggested Citation

  • L.H. Lee & E.P. Chew & M.S. Sim, 2009. "A revenue management model for sea cargo," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 6(2), pages 195-222.
    • Handle: RePEc:ids:ijores:v:6:y:2009:i:2:p:195-222
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=26535
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Citations

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


    Cited by:

    1. Ming Yin & Zheng Wan & Kap Hwan Kim & Shi Yuan Zheng, 2019. "An optimal variable pricing model for container line revenue management systems," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 21(2), pages 173-191, June.
    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. 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).
    4. 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).
    5. Guo, Wenjing & Atasoy, Bilge & van Blokland, Wouter Beelaerts & Negenborn, Rudy R., 2021. "Global synchromodal transport with dynamic and stochastic shipment matching," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    6. 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.
    7. 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.
    8. Hua-An Lu & Wen-Hung Mu, 2016. "A slot reallocation model for containership schedule adjustment," Maritime Policy & Management, Taylor & Francis Journals, vol. 43(1), pages 136-157, January.
    9. 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).
    10. 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.

    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:ids:ijores:v:6:y:2009:i:2:p:195-222. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=170 .

    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.