Allocation model of logistics revenue management for ocean shipping industry under uncertainty

Under circumstance of multiple routes and demand uncertainty, it is an important task for liner companies to allocate the limited transportation capacity efficiently and which is a typical capacity allocation problem in revenue management. However, for the reuse of containers, the empty containers transportation cost and balance problems should be considered at the same time. We propose in this paper a network optimization model on capacity allocation with empty containers transportation involved. Novel approach of robust optimisation techniques for stochastic programming is applied to solve the problem. Finally we explained the application value of this model and solution method to the logistics companies of container ocean shipping by simulation.