Search results for: transshipment
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 8

Search results for: transshipment

8 Cost-Optimized Extra-Lateral Transshipments

Authors: Dilupa Nakandala, Henry Lau

Abstract:

Ever increasing demand for cost efficiency and customer satisfaction through reliable delivery have been a mandate for logistics practitioners to continually improve inventory management processes. With the cost optimization objectives, this study considers an extended scenario where sourcing from the same echelon of the supply chain, known as lateral transshipment which is instantaneous but more expensive than purchasing from regular suppliers, is considered by warehouses not only to re-actively fulfill the urgent outstanding retailer demand that could not be fulfilled by stock on hand but also for preventively reduce back-order cost. Such extra lateral trans-shipments as preventive responses are intended to meet the expected demand during the supplier lead time in a periodic review ordering policy setting. We develop decision rules to assist logistics practitioners to make cost optimized selection between back-ordering and combined reactive and proactive lateral transshipment options. A method for determining the optimal quantity of extra lateral transshipment is developed considering the trade-off between purchasing, holding and backorder cost components.

Keywords: lateral transshipment, warehouse inventory management, cost optimization, preventive transshipment

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7 Research on Supply Chain Coordination Based on Lateral Transshipment in the Background of New Retail

Authors: Yue Meng, Lingyun Wei

Abstract:

In this paper, the coordination problem of a supply chain system composed of multiple retailers and manufacturers is studied under the background of the new retail supply chain. Taking a system composed of two retailers and one manufacturer as an example, this paper introduces an online store owned by the manufacturer to reflect the characteristics of the combination of online and offline new retail. Then, this paper gives the conditions that need to be satisfied to realize the coordination between retailers and manufacturers, such as the revenue sharing coefficient. The supply chain coordination model is compared with the newsboy model through a specific example. Finally, the conclusion is drawn that the profits of the coordinated supply chain and its members are better than the corresponding profits under the newsboy model; that is, the coordination of the supply chain is realized by using the revenue sharing contract and the transshipment fund mechanism.

Keywords: transshipment, coordination, multi-retailer, revenue-sharing contract

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6 Model of Transhipment and Routing Applied to the Cargo Sector in Small and Medium Enterprises of Bogotá, Colombia

Authors: Oscar Javier Herrera Ochoa, Ivan Dario Romero Fonseca

Abstract:

This paper presents a design of a model for planning the distribution logistics operation. The significance of this work relies on the applicability of this fact to the analysis of small and medium enterprises (SMEs) of dry freight in Bogotá. Two stages constitute this implementation: the first one is the place where optimal planning is achieved through a hybrid model developed with mixed integer programming, which considers the transhipment operation based on a combined load allocation model as a classic transshipment model; the second one is the specific routing of that operation through the heuristics of Clark and Wright. As a result, an integral model is obtained to carry out the step by step planning of the distribution of dry freight for SMEs in Bogotá. In this manner, optimum assignments are established by utilizing transshipment centers with that purpose of determining the specific routing based on the shortest distance traveled.

Keywords: transshipment model, mixed integer programming, saving algorithm, dry freight transportation

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5 A 15 Minute-Based Approach for Berth Allocation and Quay Crane Assignment

Authors: Hoi-Lam Ma, Sai-Ho Chung

Abstract:

In traditional integrated berth allocation with quay crane assignment models, time dimension is usually assumed in hourly based. However, nowadays, transshipment becomes the main business to many container terminals, especially in Southeast Asia (e.g. Hong Kong and Singapore). In these terminals, vessel arrivals are usually very frequent with small handling volume and very short staying time. Therefore, the traditional hourly-based modeling approach may cause significant berth and quay crane idling, and consequently cannot meet their practical needs. In this connection, a 15-minute-based modeling approach is requested by industrial practitioners. Accordingly, a Three-level Genetic Algorithm (3LGA) with Quay Crane (QC) shifting heuristics is designed to fulfill the research gap. The objective function here is to minimize the total service time. Preliminary numerical results show that the proposed 15-minute-based approach can reduce the berth and QC idling significantly.

Keywords: transshipment, integrated berth allocation, variable-in-time quay crane assignment, quay crane assignment

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4 The Duty of Sea Carrier to Transship the Cargo in Case of Vessel Breakdown

Authors: Mojtaba Eshraghi Arani

Abstract:

Concluding the contract for carriage of cargo with the shipper (through bill of lading or charterparty), the carrier must transport the cargo from loading port to the port of discharge and deliver it to the consignee. Unless otherwise agreed in the contract, the carrier must avoid from any deviation, transfer of cargo to another vessel or unreasonable stoppage of carriage in-transit. However, the vessel might break down in-transit for any reason and becomes unable to continue its voyage to the port of discharge. This is a frequent incident in the carriage of goods by sea which leads to important dispute between the carrier/owner and the shipper/charterer (hereinafter called “cargo interests”). It is a generally accepted rule that in such event, the carrier/owner must repair the vessel after which it will continue its voyage to the destination port. The dispute will arise in the case that temporary repair of the vessel cannot be done in the short or reasonable term. There are two options for the contract parties in such a case: First, the carrier/owner is entitled to repair the vessel while having the cargo onboard or discharged in the port of refugee, and the cargo interests must wait till the breakdown is rectified at any time, whenever. Second, the carrier/owner will be responsible to charter another vessel and transfer the entirety of cargo to the substitute vessel. In fact, the main question revolves around the duty of carrier/owner to perform transfer of cargo to another vessel. Such operation which is called “trans-shipment” or “transhipment” (in terms of the oil industry it is usually called “ship-to-ship” or “STS”) needs to be done carefully and with due diligence. In fact, the transshipment operation for various cargoes might be different as each cargo requires its own suitable equipment for transfer to another vessel, so this operation is often costly. Moreover, there is a considerable risk of collision between two vessels in particular in bulk carriers. Bulk cargo is also exposed to the shortage and partial loss in the process of transshipment especially during bad weather. Concerning tankers which carry oil and petrochemical products, transshipment, is most probably followed by sea pollution. On the grounds of the above consequences, the owners are afraid of being held responsible for such operation and are reluctant to perform in the relevant disputes. The main argument raised by them is that no regulation has recognized such duty upon their shoulders so any such operation must be done under the auspices of the cargo interests and all costs must be reimbursed by themselves. Unfortunately, not only the international conventions including Hague rules, Hague-Visby Rules, Hamburg rules and Rotterdam rules but also most domestic laws are silent in this regard. The doctrine has yet to analyse the issue and no legal researches was found out in this regard. A qualitative method with the concept of interpretation of data collection has been used in this paper. The source of the data is the analysis of regulations and cases. It is argued in this article that the paramount rule in the maritime law is “the accomplishment of the voyage” by the carrier/owner in view of which, if the voyage can only be finished by transshipment, then the carrier/owner will be responsible to carry out this operation. The duty of carrier/owner to apply “due diligence” will strengthen this reasoning. Any and all costs and expenses will also be on the account pf the owner/carrier, unless the incident is attributable to any cause arising from the cargo interests’ negligence.

Keywords: cargo, STS, transshipment, vessel, voyage

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3 Multiple-Material Flow Control in Construction Supply Chain with External Storage Site

Authors: Fatmah Almathkour

Abstract:

Managing and controlling the construction supply chain (CSC) are very important components of effective construction project execution. The goals of managing the CSC are to reduce uncertainty and optimize the performance of a construction project by improving efficiency and reducing project costs. The heart of much SC activity is addressing risk, and the CSC is no different. The delivery and consumption of construction materials is highly variable due to the complexity of construction operations, rapidly changing demand for certain components, lead time variability from suppliers, transportation time variability, and disruptions at the job site. Current notions of managing and controlling CSC, involve focusing on one project at a time with a push-based material ordering system based on the initial construction schedule and, then, holding a tremendous amount of inventory. A two-stage methodology was proposed to coordinate the feed-forward control of advanced order placement with a supplier to a feedback local control in the form of adding the ability to transship materials between projects to improve efficiency and reduce costs. It focused on the single supplier integrated production and transshipment problem with multiple products. The methodology is used as a design tool for the CSC because it includes an external storage site not associated with one of the projects. The idea is to add this feature to a highly constrained environment to explore its effectiveness in buffering the impact of variability and maintaining project schedule at low cost. The methodology uses deterministic optimization models with objectives that minimizing the total cost of the CSC. To illustrate how this methodology can be used in practice and the types of information that can be gleaned, it is tested on a number of cases based on the real example of multiple construction projects in Kuwait.

Keywords: construction supply chain, inventory control supply chain, transshipment

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2 Mass Flux and Forensic Assessment: Informed Remediation Decision Making at One of Canada’s Most Polluted Sites

Authors: Tony R. Walker, N. Devin MacAskill, Andrew Thalhiemer

Abstract:

Sydney Harbour, Nova Scotia, Canada has long been subject to effluent and atmospheric inputs of contaminants, including thousands of tons of PAHs from a large coking and steel plant which operated in Sydney for nearly a century. Contaminants comprised of coal tar residues which were discharged from coking ovens into a small tidal tributary, which became known as the Sydney Tar Ponds (STPs), and subsequently discharged into Sydney Harbour. An Environmental Impact Statement concluded that mobilization of contaminated sediments posed unacceptable ecological risks, therefore immobilizing contaminants in the STPs using solidification and stabilization was identified as a primary source control remediation option to mitigate against continued transport of contaminated sediments from the STPs into Sydney Harbour. Recent developments in contaminant mass flux techniques focus on understanding “mobile” vs. “immobile” contaminants at remediation sites. Forensic source evaluations are also increasingly used for understanding origins of PAH contaminants in soils or sediments. Flux and forensic source evaluation-informed remediation decision-making uses this information to develop remediation end point goals aimed at reducing off-site exposure and managing potential ecological risk. This study included reviews of previous flux studies, calculating current mass flux estimates and a forensic assessment using PAH fingerprint techniques, during remediation of one of Canada’s most polluted sites at the STPs. Historically, the STPs was thought to be the major source of PAH contamination in Sydney Harbour with estimated discharges of nearly 800 kg/year of PAHs. However, during three years of remediation monitoring only 17-97 kg/year of PAHs were discharged from the STPs, which was also corroborated by an independent PAH flux study during the first year of remediation which estimated 119 kg/year. The estimated mass efflux of PAHs from the STPs during remediation was in stark contrast to ~2000 kg loading thought necessary to cause a short term increase in harbour sediment PAH concentrations. These mass flux estimates during remediation were also between three to eight times lower than PAHs discharged from the STPs a decade prior to remediation, when at the same time, government studies demonstrated on-going reduction in PAH concentrations in harbour sediments. Flux results were also corroborated using forensic source evaluations using PAH fingerprint techniques which found a common source of PAHs for urban soils, marine and aquatic sediments in and around Sydney. Coal combustion (from historical coking) and coal dust transshipment (from current coal transshipment facilities), are likely the principal source of PAHs in these media and not migration of PAH laden sediments from the STPs during a large scale remediation project.

Keywords: contaminated sediment, mass flux, forensic source evaluations, remediation

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1 Production and Distribution Network Planning Optimization: A Case Study of Large Cement Company

Authors: Lokendra Kumar Devangan, Ajay Mishra

Abstract:

This paper describes the implementation of a large-scale SAS/OR model with significant pre-processing, scenario analysis, and post-processing work done using SAS. A large cement manufacturer with ten geographically distributed manufacturing plants for two variants of cement, around 400 warehouses serving as transshipment points, and several thousand distributor locations generating demand needed to optimize this multi-echelon, multi-modal transport supply chain separately for planning and allocation purposes. For monthly planning as well as daily allocation, the demand is deterministic. Rail and road networks connect any two points in this supply chain, creating tens of thousands of such connections. Constraints include the plant’s production capacity, transportation capacity, and rail wagon batch size constraints. Each demand point has a minimum and maximum for shipments received. Price varies at demand locations due to local factors. A large mixed integer programming model built using proc OPTMODEL decides production at plants, demand fulfilled at each location, and the shipment route to demand locations to maximize the profit contribution. Using base SAS, we did significant pre-processing of data and created inputs for the optimization. Using outputs generated by OPTMODEL and other processing completed using base SAS, we generated several reports that went into their enterprise system and created tables for easy consumption of the optimization results by operations.

Keywords: production planning, mixed integer optimization, network model, network optimization

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