A network flow model for the optimal allocation of both foldable and standard containers

Abstract

This paper considers a multi-port and multi-period container planning problem of shipping companies that use both standard and foldable containers. A company must decide which number of empty containers of each type to purchase and reposition at each port within a defined period to minimize the total purchasing, repositioning, and storage costs.We develop a model to optimally allocate both foldable and standard containers. We show that a single commodity minimum cost network flow algorithm solves the problem by proving that a two commodity flow problem can be modeled as a single commodity flow problem.