DYNAMIC PROGRAMMING A TANKSHIP CHARTER MARKET

Dynamic programming is applied to a demand/supply model of the tankship charter market to provide the decision maker with a consistent method of optimizing vessel employment. The ship investment order and sell decision is treated briefly. The model is developed from a state space consisting of X, the ship's condition; D, demand level for the ship's service; S, supply level for the vessel type; and L, lead time necessary for vessel ordering. A FORTRAN program demonstrates the computational feasibility of the dynamic programming approach to such a model. By inserting cost information of interest into the program, solutions of real world problems are easily performed.

• Corporate Authors:

  Massachusetts Institute of Technology

  Department of Ocean Engineering, 77 Massachusetts Avenue
  Cambridge, MA  United States  02139
• Authors:
  • Woodyard, A H
• Publication Date: 1971-8

Subject/Index Terms

• TRT Terms: Chartering; Information processing; Scheduling; Ship operations; Tanker shipping; Tankers
• Old TRIS Terms: Computerized scheduling; Tanker operations; Tanker scheduling
• Subject Areas: Marine Transportation; Operations and Traffic Management;

Filing Info

• Accession Number: 00034669
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Sep 29 1972 12:00AM