MULTI-PERIOD MARITIME LOGISTICS NETWORK OPTIMIZATION USING MIXED INTEGER PROGRAMMING

Abstract

Indonesia, as an archipelago country, is dependent to maritime logistics on transporting goods
and transportation. However, its performance is still poor, indicated by high cost of logistics. Designing
maritime logistics network is crucial for shipping company on developing their business. The objective of
this research is to design a liner shipping logistics network on multi-period planning horizon using mixed
integer programming with maximizing profit as objective function. Three given scenarios (fixed route and
fleet size, fixed route but fleet size may increase, and random route and fleet size) are analyzed for ten years
within three different conditions of demand (demand equals to forecasted demand, demand equals to
forecasted demand of certain period, and demand is constant). The result shows that the second scenario
gives the most satisfying result of objective function in profit and fleet allocation variables. The third
scenario gives the highest profit on every condition and first scenario has the lowest number of vessels. The
profit margin between the third and second scenario on each condition are 2.99%, 1.32%, and 0.004 % and
fleet allocation gap between the first and second scenario are 1 ship, 1 ship, 0 ship respectively.