Article ID: | iaor20112737 |
Volume: | 47 |
Issue: | 4 |
Start Page Number: | 401 |
End Page Number: | 413 |
Publication Date: | Jul 2011 |
Journal: | Transportation Research Part E |
Authors: | Meng Qiang, Wang Tingsong |
Keywords: | programming: dynamic, programming: integer |
This paper proposes a more realistic multi‐period liner ship fleet planning problem for a liner container shipping company than has been studied in previous literature. The proposed problem is formulated as a scenario‐based dynamic programming model consisting of a number of integer linear programming formulations for each single planning period, and the model can be solved efficiently by a shortest path algorithm on an acyclic network. A numerical example is carried out to illustrate the applicability of the proposed model and solution method. The numerical results show that chartering in ships may not always be a better policy for a long‐term planning horizon though it is much cheaper than buying ships in the short‐term. Purchasing ships seems to be a more profitable investment in the long run.