Article
Multi-Product Maritime Inventory Routing With Optional Cargoes : An Application to Outbound Automotive Logistics
Purpose – The ocean transportation of automobiles is carried out by specialized Roll-on/Roll-off
ships, which are designed to carry a large number of automobiles at a time. Many of these shipping
companies have vertically integrated or collaborated with other logistics services providers to offer
integrated maritime logistics solution to car manufacturers. The purpose of this study is to develop an
optimization model to address the tactical level maritime logistics planning for such a company.
Design/methodology/approach – The problem is formulated as a mixed integer linear program
and we propose an iterative combined Ant colony and linear programming-based solution technique
for the same.
Findings – This paper can integrate the maritime transportation planning of internally managed
cargoes with the inventory management at the loading and discharging ports to minimize supplychain
cost and also maximize additional revenue through optional cargoes using same fleet of ships.
Research limitations/implications – The mathematical model does not consider the variability in
production and consumption of products across various locations, travel times between different nodes, etc.
Practical implications – The suggested mathematical model to the supply-chain planning
problem and solution technique can be considered in the development of decision support system for
operations planning.