2011
HMS 2011 Proceeding
Modeling the Empty Container Flow: Identifying Primary Influencing Factors Through Scenario Analysis
Authors: Mandar Tulpule, Rafael Diaz, Joshua G. Behr, Francesco Longo
Abstract
Empty container management is a critical managerial area that affects the profitability of the container industry. Multiple factors that include the trade imbalance, storage costs, tariffs, taxes, handling costs and cost of manufacturing new containers affect the flow of empty containers. Trade imbalance is generally known as the primary influencing factor that leads to empty container accumulation. This study presents a view that trade imbalance is just an enabling factor and that the underlying reasons for accumulation of empty containers are the dynamics associated with the container leasing industry. The present study capitalizes and extends a previous study developed by Tulpule, Diaz, Longo, & Cimino (2010) that concerns with identifying the critical factors that intervene in empty containers management and creating a system dynamics framework for modeling this system. This extension further characterizes containers ?owned? by the shipping company and those ?leased? by the same company. Moreover, this new model includes new container manufacturing capacities and is used to perform a theoretical scenario analysis. This model forms a basis for reasoning about the possible trends in empty container movements such that the decision-making processes can be aided and improved.
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