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A decision support method for internal truck employment

Z.X. Wang (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, Hong Kong)
Felix T.S. Chan (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, Hong Kong)
S.H. Chung (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, Hong Kong)
Ben Niu (College of Management, Shenzhen University, Shen Zhen, China and Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, Hong Kong)

Industrial Management & Data Systems

ISSN: 0263-5577

Article publication date: 7 October 2014

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Abstract

Purpose

The purpose of this paper is to propose a model that determines the strategy of owning and renting trucks in combinations with internal truck scheduling and storage allocation problems in container terminals.

Design/methodology/approach

To deal with this complicated problem, a two-level heuristic approach is developed, in which the integration problem is decomposed into two levels. The first level determines the daily operations of the internal trucks, while the second level determines the truck employment strategy based on the calculation in the first level.

Findings

The results show that: even if the using cost of owned yard trucks is much lower than the cost of rented yard tucks, terminal companies should not purchase too many trucks when the purchasing price is high. In addition, the empirical truck employment strategies, which are purchasing all the trucks or renting all the trucks, are not cost-effective when compared with the proposed yard truck employment strategy.

Originality/value

The paper provides a novel insight for the internal truck employment strategy in container terminals which is the determination of the strategy of employing renting and outsourcing yard trucks to meet operational daily transportation requirements and minimize the long-term cost of employing yard trucks. A mathematical model is proposed to deal with the practical problem. Also, this study presents better solution than empirical method for employing different types of yard truck. Thus, in order to obtain more benefit, terminal companies should employ the proposed yard truck employment strategy.

Keywords

Acknowledgements

The authors would like to thank The Hong Kong Polytechnic University Research Committee (Project No.G-UB03) for financial and technical support, and also the Teaching Company Scheme project (Project No. ZW1H (TCS162)), and a grant from The Hong Kong Scholars Program Mainland – Hong Kong Joint Postdoctoral Fellows Program (Project No. G-YZ24), and The National Natural Science Foundation of China (Grants Nos.71471158, 71271140), The authors also would like to thank The Hong Kong Polytechnic University Research Committee for financial and technical support.

Citation

Wang, Z.X., T.S. Chan, F., Chung, S.H. and Niu, B. (2014), "A decision support method for internal truck employment", Industrial Management & Data Systems, Vol. 114 No. 9, pp. 1378-1395. https://doi.org/10.1108/IMDS-07-2014-0215

Publisher

:

Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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