Indonesian Maritime Logistics Network Optimization Using Mixed Integer Programming

Abstract

Abstract. Some causes of the high logistic costs and significant disparity in Indonesia's commodity price is the imbalanced distribution of the flow of goods between west and east regional of Indonesia and the slow development infrastructure. This issue can be happened because maritime transport infrastructure in Indonesia have not served effectively yet,. Therefore, the provider of shipping services should be able to design the Indonesian maritime logistics network that best suits with the current maritime conditions and provide the greatest benefits. This study aims to obtain a model of decision-making at all levels (strategic, tactical, operational) to determine the type of vessel, the shipping routes, and cargo allocation that gives the maximum profit. Main purpose from this study is to develop decision-making model for maritime logistics network design at all levels (strategic, tactical, operational) by using Mixed Integer Programming which can solve the combination of fleet-design, ship-scheduling, and cargo routing problems simultaneously.

Designing Indonesian Liner Shipping Network

“…Butterfly routes ensure one port will be passed twice (Ronen [8], Meijer [9]). This paper reflects the on going research conducted in our laboratory/research group regarding Maritime Logistics topics (Wibowo et al [10], Moeis and Goputra [11]), particularly Indonesian Liner Network Design (Rahmawan et al [12], Komarudin et al [13,14]). …”

“…Figure 5 obligates all the demand to be fulfilled, it will increase the percentage of container shipped but will reduce the profit gained. Figure 3 is a financial performance comparison of shipping companies in scenario 1 and scenario 2 (Rahmawan et al [12]). From Figure 3, we can conclude that fulfilling all demand will increase the total revenue, however it will increase the cost as well, especially in fuel cost.…”

A Location Inventory Routing Optimisation Model and Algorithm for a Remote Island Shipping Network considering Emergency Inventory

“…Da Costa Fontes and Goncalves [8] proposed a hub-and-spoke network structure with a sub-hub and attempted to apply this network structure in maritime network design. Rahmawan and Angelina [9] developed an all-levels decision-making model for fleet design, ship scheduling, and cargo routing combination problems. The above literature reveals important considerations to focus on for the maritime network design problem and suggests effective solutions which have significant reference value.…”