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Dynamic Network for Air FreightForwarder's Stochastic CapacityManagement |
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| รหัสดีโอไอ | |
| Creator | Kannapha Amaruchkul |
| Title | Dynamic Network for Air FreightForwarder's Stochastic CapacityManagement |
| Publisher | Research Administration Division |
| Publication Year | 2567 |
| Journal Title | Science & Technology Asia |
| Journal Vol. | 29 |
| Journal No. | 3 |
| Page no. | 36-56 |
| Keyword | Air freight, Capacity management, Linear programming, Mathematical pro-gramming, Stochastic programming |
| URL Website | https://www.tci-thaijo.org/index.php/SciTechAsia/index |
| Website title | ThaiJo2 |
| ISSN | 2586-9000 |
| Abstract | A freight forwarder, a key player in the air cargo service chain, collects individualpackages from shippers and transports consolidated shipments to air carriers, some of whichhave long-term block space agreements with the forwarder. If, on any day, the total demandfrom the consolidated shipment exceeds the allotment specified in the block space agree-ment, the forwarder may need to purchase additional space in the spot market, where thefreight rate is often higher. Alternatively, the forwarder may opt to delay some shipments,storing them overnight at a warehouse and incurring inventory holding costs. On the otherhand, if the total demand is less than the allotment, the forwarder is required to pay at leastthe minimum charge. For each destination and each day of the week, demand exhibits sig-nificant week-to-week variation, while the capacity supply on each day of the week remainsfixed over the contract duration. In the long-term problem, the forwarder must decide onthe allotment before knowing the random daily demand. In the short-term problem, it deter-mines how to allocate the realized demand to multiple carriers with different freight rates.The problem is formulated as a two-stage stochastic program, embedding the multi-day net-work of time-varying demand. The proposed solution is compared to the current approachin a case study, utilizing historical demand data from one of Thailand's largest forwarders.Based on the top four destinations from April 2020 to July 2021, our proposed solution yieldssignificant cost savings. |
