Capacity allocation of liner ships when considering strategically throwing away cargoes

Pao Yue-kong Library Electronic Theses Database

Capacity allocation of liner ships when considering strategically throwing away cargoes

 

Author: Fu, Jinjin
Title: Capacity allocation of liner ships when considering strategically throwing away cargoes
Degree: M.Phil.
Year: 2017
Subject: Ocean liners.
Shipping -- Costs.
Ships -- Cost of operation.
Business logistics.
Hong Kong Polytechnic University -- Dissertations
Department: Dept. of Logistics and Maritime Studies
Pages: 64 pages : illustrations
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b2961655
URI: http://theses.lib.polyu.edu.hk/handle/200/8917
Abstract: Nearly 90% of global trade is transported by ships. However, the increasing demand for high-quality shipping services and lower prices combined with the endless competition in the shipping market compel shipping companies to allocate the ship capacity more effectively. First, a benchmark capacity allocation model on a three-port (A , B and C) shipping line is established. In the model, the shipping company can observe the demand from the departure port A, but the demand from the intermediate port B is unobserved. When the shipping company allocates the capacity at the departure port A, the uncertainty from the intermediate port B must be considered. We find that the optimal capacity allocation strategy is related to a threshold parameter, which is decided by the shipping price of each shipping leg and the demand function of shipping leg B - C. When the threshold parameter is larger than the entire capacity of the ship, the shipping company should accept cargoes of shipping leg A -B as many as possible; When the threshold parameter is relatively small, the profit function reaches the peak point when the confirmed cargo delivery amount of shipping leg A - B is equal to the threshold parameter and the confirmed cargo delivery amount of shipping leg A - C is equal to the gap between the entire capacity of the ship and the threshold parameter. The second model considers when strategically throwing away cargoes is allowed, how the shipping company should allocate the capacity. The optimal results show that strategically throwing away cargoes will increase the optimal amount of cargoes that should be accepted to shipping leg A-C in some special cases. By comparing the expected revenues of the two models in the long run, the cases when throwing away cargoes should be allowed are shown. Lastly, a numerical example with exponential distribution demand is illustrated. The gap between the expected revenues of the two models shows that allowing the throwing away of cargoes can achieve higher expected revenues in all five cases.

Files in this item

Files Size Format
b29616554.pdf 1.609Mb PDF
Copyright Undertaking
As a bona fide Library user, I declare that:
  1. I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
  2. I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
  3. I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.
By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.

     

Quick Search

Browse

More Information