Advantages Of Maritime Transportation

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Maritime transportation is the backbone of global trading. More than 80% of global product distribution are using ship (United Nations Conference on Trade and Development, 2015). Therefore, it has several advantages compared to land and air distribution. Compared to air transportation, maritime transportation is more efficient in terms of cost and quantity. Maritime transportation also can cover sea and have inter-island connected which are cannot be done by maritime transportation. Indonesia, which have 3.544.743,9 km2 (Kementrian Sekretariat Negara Republik Indonesia, 2010) sea area is responsible to make its maritime as an advantages. Based on the operation type, maritime transportation divided into three, tramp shipping, industrial shipping,…show more content…
For ship distribution, several factors that become consideration are ship type, capacity, speed, voyage time, port dwelling time, weather condition, and other uncertainty in ship operation (Romero, Duran, Marenco, & Weintraub, 2013). Therefore, there are many of those factors are uncertainty and become one of cause in imprecision of ship distribution planning. One of the problems in ship distribution is Inventory Ship Routing Problem (ISRP). ISRP emerges from Vendor Managed Inventory (VMI) policy that inventory of a customer is in responsibility of the vendor. Therefore, in ISRP the decision of vehicle routing and inventory control done simultaneously in order to maintain customer inventory level as well as ensure that there is no stock out occur in the…show more content…
Therefore, for bigger data case, finding the solution by using exact methods will need long computation time. As well as the real case problem in oil and gas company the complexity of the problem increases. Those type of companies also do not have its own ship to distribute their product, instead, they use vessel contract option as the solution. Thus, this research about dynamic multi-product inventory ship routing problem model development in terms of long-term vessel contract has several limitations and assumptions to accommodate the problem complexity. So, heuristic method is selected because it will skip several steps compared to exact method by using some algorithm developed for specified problems. Periodical evaluation also carried out in order to accommodate dynamic factors so the route of ship become more efficient and the total cost is

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