TY - JOUR
T1 - Incorporating transportation mode decisions into production-shipping planning
T2 - Considering shipping consolidation
AU - Huang, Qian
AU - Ohmori, Shunichi
AU - Yoshimoto, Kazuho
N1 - Funding Information:
This work was supported by JSPS KAKENHI Grant Number JP20K14987.
Publisher Copyright:
© 2021 Operations and Supply Chain Management Forum. All rights reserved.
PY - 2021
Y1 - 2021
N2 - This study develops a global production-shipping planning model that incorporates a decision on transportation mode after considering the cost function of different transportation modes from the shipper's point of view. We propose tramp shipping, liner shipping, and a mixed mode to select the optimal shipping mode, considering transshipment and consolidation to exploit economies of scale under a given network. We present mathematical formulations of tramp, liner and mixed modes and apply a piecewise approximation technique with mixed-linear integer programming to linearly approximate the concave minimization problem and efficiently solve it using an off-the-shelf solver. In order to verify the effectiveness of the proposed modes, the three modes are compared and discussed in numerical examples. The advantages and disadvantage of the three modes are discussed under different situations. The result is a decision aided system to support production-shipping planning in selecting the optimal transportation mode.
AB - This study develops a global production-shipping planning model that incorporates a decision on transportation mode after considering the cost function of different transportation modes from the shipper's point of view. We propose tramp shipping, liner shipping, and a mixed mode to select the optimal shipping mode, considering transshipment and consolidation to exploit economies of scale under a given network. We present mathematical formulations of tramp, liner and mixed modes and apply a piecewise approximation technique with mixed-linear integer programming to linearly approximate the concave minimization problem and efficiently solve it using an off-the-shelf solver. In order to verify the effectiveness of the proposed modes, the three modes are compared and discussed in numerical examples. The advantages and disadvantage of the three modes are discussed under different situations. The result is a decision aided system to support production-shipping planning in selecting the optimal transportation mode.
KW - Consolidation
KW - Economies of scale
KW - Optimization
KW - Production-shipping planning
KW - Transportation mode
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U2 - 10.31387/oscm0440286
DO - 10.31387/oscm0440286
M3 - Article
AN - SCOPUS:85105259312
SN - 1979-3561
VL - 14
SP - 62
EP - 72
JO - Operations and Supply Chain Management
JF - Operations and Supply Chain Management
IS - 1
ER -