The optimal sizing of the storage space and handling facilities for import containers

This paper discusses a method of determining the optimal amount of storage space and the optimal number of transfer cranes for handling import containers. A cost model is developed for the decision making. The cost model consists of the space cost, the investment cost of transfer cranes, and the operating cost of transfer cranes and trucks. Two different cases are treated, one where the cost of only the terminal operator is minimized, and another where the total cost of both the terminal operator and the customers is minimized. For the former case, a deterministic model is developed, while for the latter case, a stochastic model is developed. Simple solution procedures for the models are provided. The solution procedures are illustrated using numerical examples.