Combined Sea and Land Transportation

Abstract

An important problem today in the field of transportation is the standardization of the cargo, e.g. by using containers, and the design of the handling and transportation equipment for the specific cargo to be transported.The paper presents a method for determining the transportation system with emphasis on sea transport. Thus the cargo is to be transported by sea from the factory to customers spread over a large region, e.g. Europe. The problem is to select the ports of call, the quantities to be delivered at the ports, as well as the size and type of vessel.This problem resembles the warehouse location problem (the location of ports) but requires in addition the determination of ship size, type of ship and whether one or more ports should be called at on each journey with a single ship. A discussion is also presented as to the possibility of considering randomness in the system with respect to customer demand and weather conditions.The method used resembles that suggested by Baumol and Wolfe for the ware-house location problem. A concave function of the quantities delivered at each port is derived and this is then shown to converge to a local optimum.An example is solved to illustrate the method.