Fuzzy inventory model for NVOCC\u2019s returnable containers under empty container repositioning with leasing option

S Rajeswari,D Nagarajan,C Sugapriya

doi:10.1007/s40747-020-00229-1

Abstract

At present, the entire globe gets engaged in importing and exporting the products for promoting their business in which supply chain management is playing a vital role. The main aspect of any effective supply chain management is the transportation of cargoes. To avoid the damages of cargoes during transportation and for minimizing the cost, the returnable containers are used. The present research deals with an inventory model of Non-Vessel Operating Common Carrier (NVOCC) for returnable containers with price dependent demand under fuzzy environment. In this study, it is presumed that the import of cargoes is less than the export. The Empty Container Repositioning (ECR) and the leasing options are utilized to replace the deficit containers which prevent shortages. The proportion of the used containers returned, the proportion of the repositioned containers and the fraction of repairable from the returned containers are considered as Triangular Fuzzy Numbers [TFNs]. Fuzzy inventory model is framed for the purpose of attaining optimal length of the screening, the repositioning cycle and the leasing cycle which are used to minimize the expected total cost and the proposed model is illustrated with the numerical example. The sensitivity analysis is performed to show the effect of fuzziness of return rate, repositioning rate and repairable percentage along with the changes in parameters.

Highlights

The supply chain management is an integrated process which includes several links such as transportation of goods, import, export etc
This paper examines the issues encountered by the Non-Vessel Operating Common Carrier (NVOCC) for its returnable containers in a closed-loop supply chain
The deficit containers are repositioned from dry port as well as from the shortest transshipment port and the number of Empty Container Repositioning (ECR) depends upon the slot allocation and the container leasing option is considered for some fraction of units that are unable to be repositioned

Summary

Introduction

The supply chain management is an integrated process which includes several links such as transportation of goods, import, export etc. This research paper studies a closed-loop supply chain management which focuses on returnable containers used for storing and safe transportation of cargoes as stated by Kim and Glock [12]. A Non-Vessel Operating Common Carrier (NVOCC) is an ocean carrier which transports cargoes without operating vessels They own their own fleet of containers and in some situations they operate containers as freight forwarders. The Empty Container Repositioning (ECR) option and the leasing option are scrutinized in this model instead of purchasing new containers for deficit units that include scarcity as well as salvaged containers. The fraction of return rate, the proportion of repairable units and the proportion of repositioned containers are considered as Triangular Fuzzy Numbers (TFNs). Instead of purchasing new containers, the idea of utilizing ECR and leasing option in this paper will be very useful for NVOCC organizations. Some of the research works related to this topic are discussed below

Literature review

Proposed methodology

Conclusion