Optimization on the Multi-period Empty Container Repositioning Problem in Regional Port Cluster Based upon Inventory Control Strategies

Abstract

Within the area of regional port clusters, this paper establishes a multi-period mixed integer programming model to optimize the empty container repositioning between public hinterlands and ports, comprehensively considering the quantitative and periodic inventory control strategy. By using Markov decision process combined with dynamic programming method, this paper dynamically optimizes the empty container inventory threshold (D;U) under quantitative strategy and S under periodical strategy at each port within the regional port clusters. On this basis, this paper optimizes the empty container repositioning scheme between public hinterlands and ports. Meanwhile, Liaoning coastal regional port cluster and its northeast hinterland are selected as the objects to solve this model and the results show that the total cost of shipping company can be saved by 14.16% and 11.92% respec- tively by the quantitative and periodical inventory control strategy. Selecting the quantity of public hinterland terminals, the empty container demand of public hinterland terminals and ports, the inventory threshold of empty containers and other factors, this paper carries on the sensitivity analysis. This paper validates inventory control strategy can weaken the shipping company in the influence of the external environment changes. And the quantitativeinventory control strategy can reduce the total cost value to a greater extent and more effective in cost control than periodical strategy.

Optimization of sea empty container reposition based on inventory control strategy

“…Li et al [1] analyzed the problem of empty container reposition at a single port and established an optimization model for empty container ownership Legros et al [2] used inventory strategies to manage empty containers to save on their usage costs; Poo et al [3] dynamically controlled the inventory cost and allocation cost of empty containers during transportation under random conditions, and developed dynamic strategies for empty container inventory control for shipping companies; Du F [4] studies the optimal empty container inventory at ports from the perspective of shipping alliances. Cai J X [5] considered the joint optimization of empty container reposition and storage in the port group, and adopted an inventory control strategy to dynamically optimize the empty container inventory in the port group and public hinterland.…”