The problem environment port terminal operators face is characterised by a highly integrated and complex workflow. There are numerous decisions at radically different scales which must be made, all the way from the berthing of huge vessels to the storage of individual shipping containers. Yet regardless of the specific decision at hand, the core objective typically remains the same: to minimise the travel distance of containers through the yard. In this paper we bring together all major port terminal decisions and, for the first time, seek to optimise these decisions with container distance minimisation in mind. The result is a problem we term the Berth Allocation, Crane and Yard Storage Assignment Problem (BACYSAP). We investigate the added value of treating all these decisions in a simultaneous fashion and compare our results against a more naïve, yet simpler, sequential approach which first solves the berth and crane problems independently and then uses these decisions as input for the yard assignment problem. Our results are somewhat counterintuitive and should not only offer food for thought to those working in port terminals, but any problem environment where there are multiple components with a single ultimate objective. The core contribution of this paper is therefore less to do with the specifics of port terminals and is instead more methodological in nature, namely: how should operational manager decision makers proceed in highly integrated problem environments so they can be confident their approach (i) produces sufficiently good results and (ii) is not unnecessarily complex.
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