Taipower’s coal logistics system: Allocation planning and bulk fleet deployment

This paper concerns the logistics system of the Taiwan power company, Taipower, and the problem it faces of coal allocation and fleet deployment of dedicated coal carriers. The coal allocation problem can be viewed as a multi-index transportation problem requiring the formulation of a coal allocation model. Owing to the high uncertainty of shipping operations, formulates a dynamic fleet assignment model to dispatch vessels and maximize ship usage. A integrated coal allocation and fleet assignment decision support system based on these models was developed to assist the decision maker. It not only guides Taipower marine operations management in annual schedule planning, but also assists operating personnel to allocate vessels to the schedules and to make rapid adjustments. It demonstrates the potential for substantial cost improvement in Taipower coal trade.