• Home
  • Search
  • An integrated shipment planning and storage capacity decision under uncertainty
  • Cite Icon21
  • https://doi.org/10.1108/ijpdlm-08-2014-0198Copy DOI Icon

An integrated shipment planning and storage capacity decision under uncertainty

  • Abstract
  • Literature Map
  • References
  • Citations
  • Similar Papers
Abstract

Purpose – In transportation and distribution systems, the shipment decisions, fleet capacity, and storage capacity are interrelated in a complex way, especially when the authors take into account uncertainty of the demand rate and shipment lead time. While shipment planning is tactical or operational in nature, increasing storage capacity often requires top management’s authority. The purpose of this paper is to present a new method to integrate both operational and strategic decision parameters, namely shipment planning and storage capacity decision under uncertainty. The ultimate goal is to provide a near optimal solution that leads to a striking balance between the total logistics costs and product availability, critical in maritime logistics of bulk shipment of commodity items. Design/methodology/approach – The authors use simulation as research method. The authors develop a simulation model to investigate the effects of various factors on costs and service levels of a distribution system. The model mimics the transportation and distribution problems of bulk cement in a major cement company in Indonesia consisting of a silo at the port of origin, two silos at two ports of destination, and a number of ships that transport the bulk cement. The authors develop a number of “what-if” scenarios by varying the storage capacity at the port of origin as well as at the ports of destinations, number of ships operated, operating hours of ports, and dispatching rules for the ships. Each scenario is evaluated in terms of costs and service level. A full factorial experiment has been conducted and analysis of variance has been used to analyze the results. Findings – The results suggest that the number of ships deployed, silo capacity, working hours of ports, and the dispatching rules of ships significantly affect both total costs and service level. Interestingly, operating fewer ships enables the company to achieve almost the same service level and gaining substantial cost savings if constraints in other part of the system are alleviated, i.e., storage capacities and working hours of ports are extended. Practical implications – Cost is a competitive factor for bulk items like cement, and thus the proposed scenarios could be implemented by the company to substantially reduce the transportation and distribution costs. Alleviating storage capacity constraint is obviously an idea that needs to be considered when optimizing shipment planning alone could not give significant improvements. Originality/value – Existing research has so far focussed on the optimization of shipment planning/scheduling, and considers shipment planning/scheduling as the objective function while treating the storage capacity as constraints. The simulation model enables “what-if” analyses to be performed and has overcome the difficulties and impracticalities of analytical methods especially when the system incorporates stochastic variables exhibited in the case example. The use of efficient frontier analysis for analyzing the simulation results is a novel idea which has been proven to be effective in screening non-dominated solutions. This has provided the authors with near optimal solutions to trade-off logistics costs and service levels (availability), with minimal experimentation times.

Similar Papers
  • PDF
  • Research Article
  • Citations1

Investigating an effective supply chain for a refinery in a regulated petroleum sector

  • Dec 31, 2012
  • The Journal for Transdisciplinary Research in Southern Africa
  • Chris Adendorf +2
  • Research Article
  • Citations122

Multiple-method analysis of logistics costs

  • Jan 25, 2012
  • International Journal of Production Economics
  • Janne Engblom +3
  • Research Article
  • Citations5

Analysis of Logistics Costs for Rice Mills in Improving the Aroma of Jasmine Rice

  • Mar 01, 2018
  • KnE Life Sciences
  • Aueamorn Wiratchai +2
  • Preprint Article

Feasibility and Performance Evaluation of CO2-EWR Systems: The Simulation Study on CO2 Injectivity and Storage Capacity Enhancement

  • Mar 18, 2025
  • Kwonsik Um +3
  • PDF
  • Research Article
  • Citations10

Determining value of logistics costs in projects: empirical findings based-on executing several cement projects in Indonesia

  • Jul 01, 2020
  • Heliyon
  • Effnu Subiyanto +1
  • Research Article
  • Citations126

Storage capacity of carbon dioxide hydrates in the presence of sodium dodecyl sulfate (SDS) and tetrahydrofuran (THF)

  • Nov 07, 2012
  • Chemical Engineering Science
  • Cláudia Ferreira Da Silva Lirio +2
  • Research Article

Hydrothermal Synthesis and Electrochemical Evaluation of Zn-Tmla MOFs Employing Trimellitic Acid

  • Jul 13, 2018
  • Electrochemical Society Meeting Abstracts
  • Shotaro Ueda +6
  • Research Article
  • Citations1

The Synergistic Effect of Saturated Na 2 SO 4 and SDS on Methane Hydrate Formation

  • Feb 02, 2026
  • Energy & Fuels
  • Shihui Ma +8
  • Research Article
  • Citations3

DETERMINATION OF INVENTORY PERIODIC REVIEW POLICY (R, s, S) USING POWER APPROXIMATION METHOD FOR MINIMIZE TOTAL INVENTORY COST IN PT. OPQ

  • Oct 04, 2019
  • International Journal of Innovation in Enterprise System
  • Ratna Wia +2
  • Research Article
  • Citations2

Research of Oil Product Secondary Distribution Optimization Based on Particular Service Level

  • May 01, 2012
  • Advanced Materials Research
  • Chun Hao Shen +3
  • Conference Article
  • Citations18

An optimized capacity planning approach for virtual infrastructure exhibiting stochastic workload

  • Mar 22, 2010
  • Swarna Mylavarapu +2
  • Research Article
  • Citations5

Research on Simulation and Optimization of Facility Layout in Flexible Manufacturing Workshop

  • Oct 01, 2011
  • Applied Mechanics and Materials
  • Dong Mei Huang +2
  • Research Article

Storage capacity plan and transition of heterogeneous energy at regional strategic level: A financial derivative perspective

  • Aug 28, 2024
  • Energy
  • Yuqun Dong +2
  • Research Article

Supply chain optimization by means of product packaging reuse: a case study

  • Jun 06, 2019
  • INNOVATION & DEVELOPMENT IN ENGINEERING AND APPLIED SCIENCES
  • Israel David Herrera Granda
  • Research Article
  • Citations49

An evaluation of two automated dispensing machines in UK hospital pharmacy

  • Feb 18, 2010
  • International Journal of Pharmacy Practice
  • Bryony Dean Franklin +4
Cactus Communications logo

Copyright 2026 Cactus Communications. All rights reserved.