2015 Informs Annual Meeting

WB67

INFORMS Philadelphia – 2015

4 - The Flight Trajectory Optimization Problem Marco Blanco, Zuse Institute Berlin, Takustr. 7, Berlin, 14195, Germany, blanco@zib.de, Ralf Borndürfer, Nam Dung Hoang, Thomas Schlechte We study the problem of computing an optimal flight trajectory on the airway network. The goal is to minimize fuel- and overfly costs while considering weather forecasts and operative constraints. While the problem is NP-hard even in simplified versions, very fast algorithms are required in practice. We present a new solution approach that combines classical shortest-path algorithms with techniques for non-linear pseudo-boolean optimization. We also show computational results on real-world data.

5 - The Extended Gate Problem: Intermodal Hub Location with Multiple Actors Yann Bouchery, Ecole de Management de Normandie, 30 Rue de Richelieu, Le Havre, 76087, France, ybouchery@em-normandie.fr, Jan Fransoo, Marco Slikker Deep-sea terminal operators are looking for solutions to improve their container handling operations. They start opening extended gates, i.e., inland hubs connected by rail to the deep-sea terminal. Intermodal hub location problems are usually solved by considering a single decision maker even though several actors often interact in practice. We analyze here the impact of having multiple actors involved by proposing a formulation of the extended gate location problem based on game theory.

WB67 67-Room 201A, CC

WB68 68-Room 201B, CC

Ocean Container Transport Logistics Sponsor: TSL/Freight Transportation & Logistics Sponsored Session Chair: Chung-Yee Lee, Chair Professor, HKUST, Dept. of IELM, Clear Water Bay, Kowloon, Hong Kong - PRC, cylee@ust.hk 1 - Coordinating Pricing and Empty Container Repositioning: An Analysis of Two-depot Shipping Systems Tao Lu, Hong Kong University of Science & Technology, Clear Water Bay, Kowloon, Hong Kong, Hong Kong - PRC, tluaa@ust.hk, Chung-Yee Lee, Loo Hay Lee This paper analyzes the joint decision of pricing and empty container repositioning in a two-depot shipping service. Demands (in both directions) are stochastic and dependent on the freight prices being charged. We formulate the problem as a Markov decision process with a three-dimensional state space. While challenging, we prove the L-natural-concavity of value functions, thereby characterizing the structure of optimal policies. 2 - Pricing and Competition in a Shipping Market with Waste Shipments and Empty Container Repositioning Rongying Chen, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong, Hong Kong - PRC, rchenac@connect.ust.hk, Chung-Yee Lee, Jing-xin Dong We study a shipping market with carriers providing service between two locations. Shipments are classified into two categories: goods and waste. Trade imbalance allows low-valued waste to be shipped at bargain rates. If imbalance persists, empty containers must be repositioned. We build a monopoly and a duopoly model to find the optimal pricing strategy for carriers. We also analyze how the profit of a carrier is affected by potential imbalance, cost structure and competition intensity. 3 - The Time Value of Containerized Cargoes Shuaian Wang, Old Dominion University, 2147 Constant Hall, IT/Decision Sciences, Old Dominion University, Norfolk, VA, 23529, United States of America, wangshuaian@gmail.com, Xiaobo Qu, Ying Yang We propose a novel method for estimating the perceived value of transit time of containers by shipping lines. The key idea is that a shipping line’s published schedule is the optimal decision that minimizes the sum of fuel cost and time- associated costs of the containers adopted by the shipping line. We estimated the adopted values of transit time for nine trans-Pacific services operated by Orient Overseas Container Line and five trans-Pacific services operated by Maersk Line. 4 - An Economic Evaluation of CO2 Emissions Reductions from Marine Transportation of LNG Shigwki Toriumi, Associate Professor, Chuo University, 1-23-27 Kasuga, Bunkyo-ku, Tokyo, 112-8551, Japan, toriumi@ise.chuo- u.ac.jp, Ryuta Takashima This study evaluates relation between transportation cost and reduction of CO2 emissions from marine transportation of LNG. We compare three patterns: (1) a regulation based on the current speed; (2) a regulation based on the optimum speed for minimal CO2 emissions; and (3) the speed for minimal cost with internalized CO2 emissions cost. This study are characterized by using vessel movement database and the sea lane network. Therefore we can estimate spatial distribution of the CO2 emissions.

Production and Distribution Systems Sponsor: Transportation, Science and Logistics Sponsored Session

Chair: Deniz Tursun, Postdoctoral Research Associate, University of Illinois, Urbana Champaign, 3308 Sharp Drive, Champaign, IL, 61822, United States of America, utursu2@illinois.edu 1 - Determining Transportation Mode Choice to Minimize Distribution Cost Luca Bertazzi, Associate Professor, University of Brescia, Via Santa Chiara, Brescia, Italy, luca.bertazzi@unibs.it, Jeffrey Ohlmann We consider a problem in which a supplier must determine the transportation mode for product deliveries to satisfy demand from a set of retailers. Four transportation modes are available: Direct Shipping, Transit Point, 2-Routing and Routing. We provide the tight worst-case performance bound for each couple of transportation modes and we compare their performance in a set of instances generated on the basis of a real case. 2 - Robust Grain Supply Chain Design Considering Post-Harvest Loss and Harvest Time Equilibrium Kun An, University of Illinois, Champaign, IL, United States of America, ankun@illinois.edu, Yanfeng Ouyang This paper presents a robust location model, where a food company maximizes its profit by optimally deploying grain processing/storage facilities, while non- cooperative and risk-averse/seeking farmers determine harvest time, shipment, storage, and market decisions under yield uncertainty. Solution methods and numerical examples are also presented. 3 - Stochastic Mixed Integer Convex Minimization Algorithm for Robust Production-Distribution Systems Deniz Tursun, Postdoctoral Research Associate, University of Illinois Urbana Champaign, 3308 Sharp Drive, Champaign, IL, 61822, United States of America, utursu2@illinois.edu, Nagi Rakesh Robust supply chain design and operation under uncertainty problems lead to confluence of integer and continuous variables, which call for Mixed-Integer Nonlinear Programming algorithms. We consider a comprehensive random projection algorithm for a subclass of MINLP’s, where the objective and constraints are defined by convex functions and integrality restrictions are imposed on a subset of the decision variables. A stochastic convex random projection optimality algorithm for lower bound solution and a stochastic random projection feasibility algorithm for upper bound solution are used in succession converging to the solution set almost surely. We aim to solve a class of robust integrated supply chain network design problems with multiple echelons where uncertain demand leads to random constraints and objective coefficients. 4 - A Bayesian Network Model for Supplier Evaluation Seyedmohsen Hosseini, Univeristy of Oklahoma, 202 W. Boyd St, Norman, OK, 73071, United States of America, m.hosseini@ou.edu, Kash Barker The selection of suppliers is a multi-criteria decision making problem that includes both tangible and intangible factors. This work presents a novel Bayesian network model that embeds both qualitative and quantitative evaluation factors within a graphical framework. Emphasis is given to supplier resilience in the supplier selection problem, in addition to other supplier characteristics.

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