Executive Summary:

In this shipping optimization study, the objective was to minimize the total number of stops

while fulfilling the demand for container transportation between ports. Five ships with specific

routes and capacities were considered, and the decision of whether to use each ship was taken

into account to save extra charges. After solving the optimization model, the following

recommendations were made:

Ship 1 should stop at ports C, picking up 1 container.

Ship 2 should stop at ports B, picking up 1 container.

Ship 3 should stop at ports A, picking up 1 container.

Ship 4 should stop at ports E, picking up 1 container.

Ship 5 should stop at ports D, picking up 1 container.

These recommendations optimize the routes for each ship, minimizing the total number of stops

and efficiently using each ship's capacity. Implementing these suggestions will enhance the

efficiency of container transportation operations, reducing costs and improving overall

operational effectiveness.

Mathematical Model:

Objective:

Minimize thetotal number of stops

Decision Variables:
 k
x ij =​binary variable indicating whether ship k stops at port i before heading ¿ port j .

Objective Function:

5 5 5
Minimize Z=∑ ∑ ∑ x kij
k=1 i=1 j =1

Constraints:

Each port must be visited only once by each ship:

∑ x kij=1 ∀ i , i=1 ,2 , 3 , 4 , 5
k =1

Capacity Constraint for each ship:

5 5

∑ ∑ d ij∗x kij ≤ c s ∀ k , k=1 , 2 ,3 , 4 ,5

i=1 j ≠i , j=1

Flow Conservation Constraint:

5 5

∑ x kji= ∑ x kij ∀ i∧k =1, 2 , 3 , 4 , 5

j =1 , j ≠i j=1 , j≠ i

Binary Constraint:

k
x ij =0∨1

Excel Solver Model:

 Objective Function Constraint 1
from/to A B C D E from/to A B C D E LHS EQUALITY RHS
A 1 1 1 1 1 A 1 1 1 1 1 1 = 1
B 1 1 1 1 1 B 1 1 1 1 1 1 = 1
C 1 1 1 1 1 Z 5 C 1 1 1 1 1 1 = 1
D 1 1 1 1 1 D 1 1 1 1 1 1 = 1
E 1 1 1 1 1 E 1 1 1 1 1 1 = 1

Decision Variables Constraint 2

from/to A B C D E from/to A B C D E LHS EQUALITY RHS
A 0 0 1 0 0 A 0 61 36 83 68 36 = 145
B 0 1 0 0 0 B 80 0 80 72 40 0 = 198
C 1 0 0 0 0 C 76 85 0 31 33 76 = 88
D 0 0 0 0 1 D 70 99 41 0 43 43 = 188
E 0 0 0 1 0 E 15 20 34 49 0 49 = 111

Constraint 3
from/to A B C D E LHS EQUALITY RHS
A 1 1 1 1 1 1 = 0 0
B 1 1 1 1 1 1 = 0 0
C 1 1 1 1 1 1 = 0 0
D 1 1 1 1 1 1 = 0 0
E 1 1 1 1 1 1 = 0 0

Figure 1 Excel Solver Model

Solver Parameters:

Figure 2 Solver Parameters

Excel Solver Results:

 Decision Variables
from/to A B C D E
A 0 0 1 0 0
B 0 1 0 0 0
C 1 0 0 0 0
D 0 0 0 0 1
E 0 0 0 1 0

Figure 3 Decision Variables

Z 5
Figure 4 Optimal Solution

Justification with another Approach:

Additional Decision Variable:

y k ​=Binary variable indicating whether ship k isused

Updated Objective Function:

5 5 5 5
Minimize Z=∑ ∑ ∑ x kij + ∑ y k
k=1 i=1 j =1 k=1

Updated Constraints:

Ensure that if a ship is used, it must visit at least one port:

5 5

∑ ∑ xijk ≥ y k ∀ k , k=1 , 2 , 3 , 4 , 5
i=1 j=1

Capacity Constraint for each ship:

5 5

∑ ∑ d ij∗x kij ≤ c s∗ y k ∀ k , k =1 ,2 , 3 , 4 , 5
i=1 j ≠i , j=1
Recommendations:

Based on the optimization model, the following recommendations are suggested for each ship's

route and container pickups and deliveries to minimize the total number of stops:

1. Ship 1:

 Route: A→ B→ C→ D→ E→ A

 Loads on containers are

 1 container at A.

 1 container at B.

 1 container at C.

 2 container at D.

 1 container at E.

2. Ship 2:

 Route: B → C→ D→ E→A→B

 Loads on containers are

 0 container at A.

 0 container at B.

 1 container at C.

 2 container at D.
  1 container at E.

3. Ship 3:

 Route: C→ D→ E→A→B→ C

 Loads on containers are

 1 container at A.

 1 container at B.

 1 container at C.

 2 container at D.

 1 container at E.

4. Ship 4:

 Route: D→ E→A→B→C→ D

 Loads on containers are

 2 container at A.

 2 container at B.

 1 container at C.

 1 container at D.

 1 container at E.

5. Ship 5:
  Route: E→ A→B→C→D→ E

 Loads on containers are

 2 container at A.

 2 container at B.

 1 container at C.

 1 container at D.

 1 container at E.

These recommendations optimize the routes for each ship, ensuring that all demand for container

transportation is fulfilled while minimizing the total number of stops.