A Chance-Constrained Two-Stage Stochastic Programming Model In Regional Empty Container Repositioning Problem: A Case Study Of Yang Ming Shipping Line

Abstract

Due to the global trade imbalance, countries with a higher import rate compared to export encounter a higher surplus of empty containers, while export-driven countries face a higher chance of having shortage. As the imbalance prevails, the problem of optimizing empty container repositioning process proves to be a huge challenge for carriers globally. A shipping line is desired to adapt to satisfy dynamic requirement from both end customers and front branches of the same mother company. In addition, for the section of supply chain within the local area, there is also a need to create the optimized strategy to store and distribute empty containers in different locations. This thesis investigates the regional inland repositioning of empty containers when their demand is uncertain at an operational level. Two-stage stochastic programming is applied to the numerical experiments are carried out to show which benefits are obtained by multi-scenario solutions with the additional introduction of chance constraints as a way to ensure supply and high service level. The problem involves illustration of current operation of the supply chain of empty container repositioning model. A real case study of Yang Ming Shipping Line in Ho Chi Minh City is taken into consideration.