Analysis of three container routing strategies

Lu Zhen, Shuaian Wang, Dan Zhuge

Research output: Journal article publicationJournal articleAcademic researchpeer-review

3 Citations (Scopus)

Abstract

As containers need several weeks to be delivered to their destinations and the future container shipment demand is uncertain, a myopic strategy for container routing that maximizes the immediate profit may lead to insufficient remaining capacity for transporting more profitable containers in the future. This study conducts a theoretical analysis to compare three container routing strategies, i.e., (i) a widely used myopic strategy, (ii) a non-myopic heuristic routing strategy that incorporates information about the future demand distribution, and (iii) a strategy that assumes future demand is known. Then a practical non-myopic heuristic container routing strategy is developed for practical purposes to increase the profit of liner shipping companies. Extensive numerical experiments show that the proposed non-myopic heuristic container routing strategy brings in an extra of 2%–3% profit over the myopic strategy.
Original languageEnglish
Pages (from-to)259-271
Number of pages13
JournalInternational Journal of Production Economics
Volume193
DOIs
Publication statusPublished - 1 Nov 2017

Keywords

  • Container routing
  • Liner shipping
  • Myopic strategy
  • Non-myopic heuristic routing strategy
  • Stochastic demand

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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