Article ID: | iaor20101437 |
Volume: | 2 |
Issue: | 1 |
Start Page Number: | 22 |
End Page Number: | 43 |
Publication Date: | Dec 2010 |
Journal: | International Journal of Shipping and Transport Logistics |
Authors: | Feng Cheng-Min, Chang Chia-Hui |
Keywords: | yield management |
This paper utilises revenue management modelling to make an optimal slot allocation serving a specific shipping service route for ocean carriers. The model, incorporating the expected cost of empty container reposition, is formulated through mathematical programming to maximise operational profit of ocean carriers, subject to some constraints of vessel capacity, container demand and empty container supply. Computational results not only present port-to-port slot allocation to be a guideline to implement space control but also provide a criterion to review the status of strategic alliance among ocean carriers.