A tactical planning model for liner shipping company

Abstract

In the tactical decision planning procedure, it is critical for liner shipping company to manage its capacity rationally and efficiently. A liner shipping company's tactical decisions consist of two main issues: the containers' flow management problem and the ship deployment problem. In this project, a mathematical model is developed to describe and solve these two problems. It is suggested that these two problems should be solved concurrently at the tactical planning level rather than sequentially. It is also found that empty containers' repositioning should be considered jointly with the loaded containers' flow at the tactical planning level so as to provide an accurate and comprehensive instruction for deploying the vessels. Based on these discussions, some managerial insights are developed for liner shipping companies.