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

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  • D-P Song

    (University of Plymouth)

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.

Suggested Citation

  • D-P Song, 2007. "Characterizing optimal empty container reposition policy in periodic-review shuttle service systems," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 58(1), pages 122-133, January.
    • Handle: RePEc:pal:jorsoc:v:58:y:2007:i:1:d:10.1057_palgrave.jors.2602150
    DOI: 10.1057/palgrave.jors.2602150
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    References listed on IDEAS

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    Cited by:

    1. Jeong, Yoonjea & Saha, Subrata & Moon, Ilkyeong, 2020. "Optimal devanning time and detention charges for container supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    2. Zheng, Wei & Li, Bo & Song, Dong-Ping, 2017. "Effects of risk-aversion on competing shipping lines’ pricing strategies with uncertain demands," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 337-356.
    3. 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.
    4. Zhou, Wei-Hua & Lee, Chung-Yee, 2009. "Pricing and competition in a transportation market with empty equipment repositioning," Transportation Research Part B: Methodological, Elsevier, vol. 43(6), pages 677-691, July.
    5. 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.
    6. Dong-Ping Song & Qing Zhang, 2011. "Optimal Inventory Control for Empty Containers in a Port with Random Demands and Repositioning Delays," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 14, Edward Elgar Publishing.
    7. 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.
    8. 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.
    9. Song, Dong-Ping & Dong, Jing-Xin, 2011. "Effectiveness of an empty container repositioning policy with flexible destination ports," Transport Policy, Elsevier, vol. 18(1), pages 92-101, January.

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