A rolling horizon heuristic for the stochastic cargo mix problem

•Uncertain demands and bookings in liner shipping call for stochastic approaches.•Novel multistage stochastic formulation for the Liner shipping cargo-mix problem.•Efficient & effective two-phase matheuristic based on a rolling horizon approach.•Realistic size instances with over 32,000 scenario...

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Bibliographic Details
Published inTransportation research. Part E, Logistics and transportation review Vol. 123; pp. 200 - 220
Main Authors Christensen, Jonas, Erera, Alan, Pacino, Dario
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.03.2019
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Summary:•Uncertain demands and bookings in liner shipping call for stochastic approaches.•Novel multistage stochastic formulation for the Liner shipping cargo-mix problem.•Efficient & effective two-phase matheuristic based on a rolling horizon approach.•Realistic size instances with over 32,000 scenarios can be solved within minutes. This paper presents the stochastic cargo-mix problem, which aims at analysing the cargo composition needed for a liner vessel to maximise its revenue on a given service. The unreliability with respect to the demand forecast is included by considering the cargo-flows as being stochastic instead of deterministic. We also take into account accepted bookings, draft, stability and capacity constraints. A compact formulation of the problem is shown to be too complex to solve industrially sized instances. Instead, a rolling horizon matheuristic is presented, and the computational results show that it can achieve high-quality results in reasonable time.
ISSN:1366-5545
1878-5794
DOI:10.1016/j.tre.2018.10.010