Improving Decision Making: Route Optimization Techniques for Aqaba Sea Port in Jordan

Abed Al-Fatah A Karasneh

doi:10.5539/ijbm.v7n9p65

Abstract

This study uses linear programming to build transportation and transshipment models in order to test whether the existing actual costs to transport the major Jordanian exports and imports are optimal. The main findings of thisresearch showed evidence about the ineffectiveness of the current policies of transportation and transshipmentwhich stipulates a change towards optimal values to target minimal overall costs of transportation andtransshipment. It is recommended that Jordan develops its own shipping fleet to cut drastically the cost ofimportation through means of economics of scale and bulk shipping.

Highlights

As world economic conditions decline, are organization seeking to revise their operational strategies and countries are taking a second look at how they can be more effective and efficient: Reducing costs, increasing revenues to maximize profit.Under developed and developing countries have the challenge of reevaluating their current status as they posses limited country resources
Applying linear programming and transportation algorithms, the aim of this paper is to find the most efficient sea transportation routes between port of Aqaba and global destinations
The data for this report has been collected from the ministry of transportation website see

Summary

Introduction

As world economic conditions decline, are organization seeking to revise their operational strategies and countries are taking a second look at how they can be more effective and efficient: Reducing costs, increasing revenues to maximize profit. Under developed and developing countries have the challenge of reevaluating their current status as they posses limited country resources. A major form of revenue for these countries include the export and import industry. This study will focus on one particular developing country with limited resources in the Middle East (i.e. Jordan), this study applies linear programming (LP) as a form of analyses to investigate the current logistical transportation network to identify the best optimal transportation route. The performance of the shipping industry has a huge impact on world economy, and attracts extensive research on it

Objectives

Methods

Conclusion