*********************************
There is now a CONTENT FREEZE for Mercury while we switch to a new platform. It began on Friday, March 10 at 6pm and will end on Wednesday, March 15 at noon. No new content can be created during this time, but all material in the system as of the beginning of the freeze will be migrated to the new platform, including users and groups. Functionally the new site is identical to the old one. webteam@gatech.edu
*********************************
In the ocean cargo industry, most of the containerized freight is transported under the provisions of medium term contracts between ocean carriers and shippers. These contracts are usually negotiated once a year, typically one or two months before the peak seasons.
An important decision for a carrier is to determine the prices specified in those contracts. An ocean carrier would like to structure the prices to maximize its total revenue while obtaining best match between supply and demand. In this study, we propose optimization models, which can be used as decision tools by ocean carriers before or during the negotiation seasons. Two deterministic models are formulated and capture the operational details at different levels. To handle uncertainties, a stochastic model is developed. The three-stage problem is solved by bundle method and trust region method. Output of the models includes optimal prices, anticipated cargo flows and equipment flows. Such output of the models can help ocean carriers to develop their negotiation strategies and cargo plans for the coming season.
Students and faculty are invited to remain after the seminar for a coffee and snacks reception until 5:30 pm.
