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B. van Riessen

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Revenue management in synchromodal container transportation

Journal article (2017) - Bart van Riessen, Rudy R. Negenborn, Rommert Dekker
The intermodal hinterland transportation of maritime containers is under pressure from port authorities and shippers to achieve a more integrated, efficient network operation. Current optimisation methods in literature yield limited results in practice, though, as the transportation product structure limits the flexibility to optimise network logistics. Synchromodality aims to overcome this by a new product structure based on differentiation in price and lead time. Each product is considered as a fare class with a related service level, allowing to target different customer segments and to use revenue management for maximising revenue. However, higher priced fare classes come with tighter planning restrictions and must be carefully balanced with lower priced fare classes to match available capacity and optimise network utilisation. Based on the developments of intermodal networks in North West European, such as the network of European Gateway Services, the Cargo Fare Class Mix problem is proposed. Its purpose is to set limits for each fare class at a tactical level, such that the expected revenue is maximised, considering the available capacity at the operational level. Setting limits at the tactical level is important, as it reflects the necessity of long-term agreements between the transportation provider and its customers. A solution method for an intermodal corridor is proposed, considering a single intermodal connection towards a region with multiple destinations. The main purpose of the article is to show that using a limit on each fare class increases revenue and reliability, thereby outperforming existing fare class mix policies, such as Littlewood. ...
Journal article (2016) - Bart van Riessen, Rudy R. Negenborn, Rommert Dekker
Hinterland networks for container transportation require planning methods in order to increase efficiency and reliability of the inland road, rail and waterway connections. In this paper we aim to derive real-time decision rules for suitable allocations of containers to inland services by analysing the solution structure of a centralised optimisation method used offline on historic data. The decision tree can be used in a decision support system (DSS) for instantaneously allocating incoming orders to suitable services, without the need for continuous planning updates. Such a DSS is beneficial, as it is easy to implement in the current practice of container transportation. Earlier proposed centralised methods can find the optimal solution for the intermodal inland transportation problem in retrospect, but are not suitable when information becomes gradually available. The main contributions are threefold: firstly, a structured method for creating decision trees from optimal solutions is proposed. Secondly, an innovative method is used for obtaining multiple equivalent optimal solutions to prevent overfitting of the decision tree. And finally, a structured analysis of three error types is presented for assessing the quality of an obtained tree. A case study illustrates the method's purpose by comparing the quality of the resulting plan with alternative methods. ...