The Vessel Schedule Recovery Problem (VSRP) – A MIP model for handling disruptions in liner shipping

• Published in: European journal of operational research Vol. 224; no. 2; pp. 362 - 374
• Main Authors: Brouer, Berit D., Dirksen, Jakob, Pisinger, David, Plum, Christian E.M., Vaaben, Bo
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 16.01.2013; Elsevier; Elsevier Sequoia S.A
• Subjects: Applied sciences; Cost control; Disruption management; Energy consumption; Exact sciences and technology; Ground, air and sea transportation, marine construction; Integer programming; Liner shipping; Logistics; Marine and water way transportation and traffic; Mathematical programming; Operational research and scientific management; Operational research. Management science; Optimization algorithms; Recovery; Scheduling; Shipping industry; Studies; United States > US; Liner shipping; Disruption management; Recovery; Mathematical programming; Script; Costs; Balancing; Fuel consumption; Mixed integer programming; Modeling; Stress; Weather; International trade; Shortage; Supplier customer relationship; User service; Transportation network; Fuel; NP hard problem; Air pollution; Maritime transportation; Service quality; Economic crisis; Logistics
• ISSN: 0377-2217; 1872-6860
• DOI: 10.1016/j.ejor.2012.08.016

► A MIP model describing the recovery of a delayed container vessel is developed. ► Model finds improved solutions on real life cases. ► Three recovery options are considered: speed adjustment, port call omission and port call swap. ► Model can enable vessel operators to take optimal decisions, fast. ► Problem is NP-complete. Containerized transport by liner shipping companies is a multi billion dollar industry carrying a major part of the world trade between suppliers and customers. The liner shipping industry has come under stress in the last few years due to the economic crisis, increasing fuel costs, and capacity outgrowing demand. The push to reduce CO2 emissions and costs have increasingly committed liner shipping to slow-steaming policies. This increased focus on fuel consumption, has illuminated the huge impacts of operational disruptions in liner shipping on both costs and delayed cargo. Disruptions can occur due to adverse weather conditions, port contingencies, and many other issues. A common scenario for recovering a schedule is to either increase the speed at the cost of a significant increase in the fuel consumption or delaying cargo. Advanced recovery options might exist by swapping two port calls or even omitting one. We present the Vessel Schedule Recovery Problem (VSRP) to evaluate a given disruption scenario and to select a recovery action balancing the trade off between increased bunker consumption and the impact on cargo in the remaining network and the customer service level. It is proven that the VSRP is NP-hard. The model is applied to four real life cases from Maersk Line and results are achieved in less than 5seconds with solutions comparable or superior to those chosen by operations managers in real life. Cost savings of up to 58% may be achieved by the suggested solutions compared to realized recoveries of the real life cases.