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  USA  02139
  • Authors:
    • Woodyard, A H
  • Publication Date: 1971-8

Subject/Index Terms

Filing Info

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