A stochastic programming formulation for strategic fleet renewal in shipping

Bakkehaug, Rikard; Eidem, Eirik Stamsø; Fagerholt, Kjetil; Hvattum, Lars Magnus

doi:10.1016/j.tre.2014.09.010

Cited by 35 publications

(19 citation statements)

References 19 publications

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“…A set of models also explores variation in fleet size and mix, but both assume new vehicles will be purchased outright (Bakkehaug et al. ) or leased from a spot market for a set time period (Gundegjerde et al. ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…A literature review reveals several variants on the basic scenario, including fleet mix problems with demand variation (Topaloglu and Powell 2007), vehicle leasing and ownership costs (Shyshou et al 2010), and multiple starting and ending points (Godfrey and Powell 2002). A set of models also explores variation in fleet size and mix, but both assume new vehicles will be purchased outright (Bakkehaug et al 2014) or leased from a spot market for a set time period (Gundegjerde et al 2015). In CSL, on the other hand, drivers are employed by task instead of time (Kittur et al 2008), allowing firms to avoid fixed costs, empty moves, and idle-time expenses.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

Castillo

Bell

Rose

et al. 2017

J of Business Logistics

170

130

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The rise of e‐commerce over the past 20 years has created an increased need for responsive omnichannel distribution to meet the last mile challenge. Some companies are experimenting with the use of the sharing economy business model to augment distribution strategies. The use of so‐called “Crowdsourced Logistics” (CSL) is becoming more prevalent in practice, but the role in logistics strategy of this new phenomenon has not been thoroughly investigated and understood. Using a contingency theory lens, this research contributes a nascent understanding of how CSL performs in terms of logistics effectiveness by simulating same‐day delivery services from a distribution center to 1,000 customer locations throughout New York City under dynamic market conditions and by comparing the results to those of a traditional dedicated fleet of delivery drivers. The findings are analyzed to suggest how firms may find strategic benefit using CSL. An agenda for future research is provided to explore these strategic implications and to deepen knowledge about the CSL phenomenon.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

Castillo

Bell

Rose

et al. 2017

J of Business Logistics

170

130

View full text Add to dashboard Cite

show abstract

“…Bakkehaug et al [35] propose a new formulation of multistage stochastic programming for the strategic fleet renewal for shipping companies. The new formulation explicitly addresses uncertainty in parameters such as future demand, freight rates and vessel prices.…”

Section: Optimization Solution For Similar Problemsmentioning

confidence: 99%

“…The optimization techniques were the most used solution approaches in the maritime transport problems where the aspects pointed out in Table 3 were observed. Some techniques with great potential to be used in the proposed problem were identified, such as those that consider the uncertainties in the method itself: dynamic programming with scenario generation [15], multi-stage stochastic programming [35] and two-stage stochastic programming [38]; the technique that addresses uncertainties by combining different methods: mixed integer nonlinear programming, Monte Carlo simulation, and conditional risk analysis [11]; and those that consider more than one objective in the mathematical modeling of the problem: multi-objective optimization [33][34][36][37].…”

Section: Multi-approach Solutionmentioning

confidence: 99%

Optimum Composition of Charter Contracts for the Renewal of the Fleet of Offshore Support Vessels Considering Uncertainties: A Literature Review

Souza¹,

Vaccaro²,

Rocha³

et al. 2019

IJHT

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This article reviews the literature on the Mendeley, Science Direct and Scopus databases on solutions to the optimal composition problem of offshore support charter contracts published between 2008 and 2018. This problem is relevant to the ongoing fleet renewal process, in terms of associated costs and fleet flexibility, in the context of oil and gas exploration and production. The problem is subject to uncertainties related to the demand to be met and to charter prices. The literature presents solutions that can be applied to parts of the problem, however a satisfactory integral solution was not found. The analysis of the literature and the characteristics of the problem indicate the construction of a solution multi-approach method as a viable way to treat the complexity of the problem.

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“…At the very end of the chapter, a table with the authors' names, their papers and criteria which they have identified as essential in term of vehicle procurement has been shown. (Bakkehaug et al, 2014) in their paper dealt with a strategic f leet renewal problem in shipping, they state that shipping companies in most cases have heterogeneous f leets (which is the same case with vehicle fleets of transport and logistics companies). Also, they lists the criteria that must be considered during vehicle procurement process: demand and supply of vessels on the secondhand market, capacity at the wharfs, demand for charter vessels, charter rates, spot cargo demand, spot cargo rates, operating costs, available capital for investment, cost of buying a secondhand vessel, cost of buying a new vessel, cost of one voyage, demand in units of spot cargo, income per unit carried on the spot market, the number of voyages that must be sailed, maximum number of voyages, capacity, selling price, scrap rate.…”

Section: Literature Reviewmentioning

confidence: 99%

Influence of Vehicle Procurement on the Vehicle Fleet Energy Efficiency

2018

IJTTE

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Abstract:In this paper, the vehicle procurement is considered as a factor which influences the vehicle fleets energy efficiency. Vehicle fleet managers in transport and logistics companies with their own fleet for freight transport often make a decision to procure an appropriate vehicle. In this sense, the vehicle procurement represents a significant activity for increasing the vehicle fleets energy efficiency. During a process of decision making in order to purchase an appropriate vehicle, managers take into consideration a number of different criteria. Based on the literature review, as well as on the basis of the author's own experience, the relevant criteria that have the significance on making the observed decision are defined in the paper. It is shown how the defined vehicle procurement criteria affect the increasing of vehicle fleet energy efficiency, as well as the reduction of the transport and maintenance costs. In order to make the right decision when purchasing a vehicle, managers need to take into consideration all defined criteria. This contributes to increasing of the vehicle fleet energy efficiency and reducing transportation and maintenance costs, thereby generating greater profit in the observed companies.

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A stochastic programming formulation for strategic fleet renewal in shipping

Cited by 35 publications

References 19 publications

Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

Crowdsourcing Last Mile Delivery: Strategic Implications and Future Research Directions

Optimum Composition of Charter Contracts for the Renewal of the Fleet of Offshore Support Vessels Considering Uncertainties: A Literature Review

Influence of Vehicle Procurement on the Vehicle Fleet Energy Efficiency

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