Document Type
Journal Article
Abstract
This paper studies a problem ofliner ship tleet planning with containertransshipment under uncertain demand for container shipments.Generally, this problem can be solved with an optimization modelto minimize or maximize the expected value of a key variable, suchas cost or profit. However, such models do not consider the variance(namely, the risk), another issue of great concern to decision makers.Therefore, this paper aims to develop a robust optimization model inwhich both expected value and variance are considered simultaneously.By adjusting the penalty parameters of the robust optimization model,decision makers can determine an optimal plan for liner ship tleets(including decisions about tleet design and deployment) to maximizetotal profit under different container shipment demand scenarios whilesimultaneously controlling variance. The robustness and effectivenessof the developed model are demonstrated with numerical results.
RIS ID
73571
Publication Details
Wang, T., Meng, Q. & Wang, S. (2012). Robust optimization model for liner ship fleet planning with container transshipment and uncertain demand. Transportation Research Record, 2273 (2012), 18-28.