DESIGNING LINER SHIPPING NETWORK IN INDONESIA WITH DEMAND UNCERTAINTY

Authors

  • Komarudin
  • Ayudya Triastika
  • Irvanu Rahman

Keywords:

Liner Shipping, Demand Uncertainty, Container Shipment, Stochastic Model

Abstract

The problem of maritime logistics in Indonesia lies on the unbalanced trade flow between
west and east region of Indonesia. Since the east region does not have many comodity to be transported, to
accommodate the demand on the east region liner shipping companies have to face the increasing amount of
operational costs which makes the company failed to achieve the optimal profit. According to that situation,
liner shipping companies needs a service network design which accomodate demand on each ports and give
maximum profit. This research uses stochastic modeling to best portray the real condition of maritime
logistics by taking demand uncertainty into consideration. The algorithm used in this research aims to
determine the ship routes, ship types, and the cargo allocation that yields higher profits. The result was
presented as a comparison between deterministic and stochastic modeling. The result shows that companies
can yield higher profit if they use stochastic modeling approach from the initial decision making stage. The
proposed solution method was designed to optimize Indonesian liner shipping services.

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Published

2017-08-27

How to Cite

Komarudin, Ayudya Triastika, & Irvanu Rahman. (2017). DESIGNING LINER SHIPPING NETWORK IN INDONESIA WITH DEMAND UNCERTAINTY. GEOMATE Journal, 13(36), 87–93. Retrieved from https://geomatejournal.com/geomate/article/view/3037