IEOR - Designing a More Efficient World

A supply-chain optimization model of the allocation of containerized imports from Asia to the United States

Publication Date: January 28, 2011

Jula, Payman and Robert C. Leachman, 2011. “A Supply Chain Optimization Model for the Allocation of Containerized Imports from Asia to the United States”,Transportation Research Part E, 47 (5), p. 609-622 (September, 2011). Port_I.pdf

Abstract: This article proposes a mixed integer non-linear programming model for the optimizing supply chains of importers of waterborne containerized goods from Asia to the USA. This model determines the least-cost strategy for an importer, in terms of ports and landside transportation modes to be used, where costs considered include costs for transportation and handling, pipeline inventory, and safety-stock. We introduce a heuristic algorithm to quickly solve the mathematical model to near optimality. We assess the proposed heuristic compared to use of a commercial solver, and provide general recommendations for efficient supply-chain strategies as a function of the value of imported goods.