Gasoline shipper’s problem in rail transportation contract in Thailand

Authors

รศ.ดร.กาญจ์นภา อมรัชกุล

Published

Operations Research and Enterprise Systems. Communications in Computer and Information Science

Abstract

A long-term contract between a Thai railroad company and a shipper who wants to transport gasoline daily is studied. The contract specifies an upfront payment for reserving bogies and a per-container freight rate. The shipper has to determine the number of bogies to be reserved upfront at the beginning of the contract, before the random daily demand is materialized. The shipper can also use a trucking company to transport the excess demand, but its freight rate is higher. We show that the expected total cost is unimodal under a relatively non-restrictive condition, and we derive an optimal solution. We also provide a sensitivity analysis with respect to the change in the contract parameter. Our numerical example shows that the additional cost, if demand uncertainty is ignored, is large.

(2558). Gasoline shipper’s problem in rail transportation contract in Thailand. Operations Research and Enterprise Systems. Communications in Computer and Information Science, N/A(N/A), 136-145.