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Study on Liner Operators’ Controlling of Empty Containers’ In-transit Inventory

Author: SongRuoChen
Tutor: ZhaoYiFei
School: Shanghai Jiaotong University
Course: Transportation Planning and Management
Keywords: Empty Container In-transit Inventory Cost Control Integer Programming
CLC: U695.22
Type: Master's thesis
Year: 2012
Downloads: 106
Quote: 1
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Abstract


After the financial crisis, container liner industry was confronted with a long-term downturn. Against such a background, liner companies usually had to adopt cost-saving measures, such as reducing the quantity of empty container. However, once the economy shows tendency of recovery, liner companies will put their idle capacity excessively into action which will accordingly generate a surge in demand of container. Thus, the imbalance between supply and demand brings about the issue of container circulation that has been constantly puzzling container liner industry.Based on this scenario, this paper applies the inventory theory to approach this problem by analyzing the hidden cost including time and risk from a perspective of in-transit inventory. With the aim of cost control, the long-term development strategy of liner company is also fully discussed.Firstly, on the basis of summarizing the cause of empty container circulation, its operation process, characteristics and existing problem of management are specifically depicted. Secondly, this paper innovatively introduces the concept of empty containers’ in-transit inventory and elaborates its cost structure, related formulas, influencing factors and controlling methods. Finally, the integer programming model of empty containers’ in-transit inventory is designed under various conditions such as definite and random supply-demand. Beside the shipping field, multimodal transport system is also taken into consideration. Based on dynamic programming theory, Lingo11.0 and Matlab are utilized to get the optimal solution of empty container distribution which in turn verify the feasibility and efficiency of this model. The result of this research is not only a beneficial attempt in corresponding theory exploration, but also a practical method for decision-makers in liner companies.

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CLC: > Transportation > Waterway transport > Waterway transportation management > Transportation business > Freight > Container Transport
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