Since the complexity of globalization and the importance of the transportation process, global manufacturers need to consider production planning with complex transportation situation. The constant value of transportation process is not accurate and leads to total cost increasing. Corresponding to different supplying network, appropriate transportation modes with nonconstant value should be considered with production planning simultaneously. The proposed model aims to assist managers to make decisions about production allocation, transportation mode selection, shipping contracts by volume with carriers and vessel companies under a given network. This study develops a global production–shipping planning model that incorporates a decision on transportation mode after considering the cost function of different transportation modes from the shipper’s point of view. We propose tramp shipping, liner shipping mode into production-shipping planning, considering transshipment and consolidation to exploit economies of scale under a given network. We present mathematical formulations of tramp, liner modes. In order to verify the effectiveness of the proposed modes, we present a practical case study that is motivated by a real-world example. The two modes are compared and discussed in numerical examples. The advantages and disadvantages of the two modes are discussed in different situations. The result is a decision aided system to support production– shipping planning in selecting the optimal transportation mode.

@inproceedings{oscm-2019-503,
  title={Introducing Tramp and Liner Shipping Model to Production Planning},
  year={2019},
  author={Qian Huang and Shunichi Ohmori and Kazuho Yoshimoto},
  booktitle={Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019},
  doi={10.31387/oscm410215}
}

Qian Huang, Shunichi Ohmori, Kazuho Yoshimoto (2019). Introducing Tramp and Liner Shipping Model to Production Planning. In Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019. https://doi.org/10.31387/oscm410215