Essay On Maritime Transportation

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This chapter describes the fundamental theories and literature review that supports the research. The main topic of literature discussed are maritime transportation, inventory management and Vendor Managed Inventory (VMI), Vehicle Routing Problem (VRP), Dynamic Inventory Ship Routing Problem (D-ISRP), heuristic method, and preceding research. Maritime Transportation Approximately 90% of the volume and 70% of the value of all goods transported worldwide is carried by sea (Al-Khayyal & Hwang, 2005). Thus, maritime transportation is the most efficient transportation modes right now. Compare with the air transportation, maritime transportation is more efficient in terms of cost and quantity. As well as compare with land transportation, maritime transportation has its own characteristic to reach another island that land transportation cannot reach. Therefore, maritime transportation is the backbone of global trade. It is supported by UNCTAD (2010) stated that more than 80% of global trading were being shipped by sea. Based on the operation type, maritime transportation is divided into three, which are tramp shipping, industrial shipping, and liner shipping (Lawrence, 1972). Tramp shipping is kind of taxi, have specific routing for specific purposes. Industrial shipping is ship voyage for industrial uses, such…show more content…
Thus, the capacity becomes the boundary as well as the amount of product that can be carried by the vehicles. Usually the decision of doing replenishment is done by the consumer or the company that have demand. Since, producers cannot control the demand occur because there is no information disclosures from consumers. Considering the complexity of the problem, openness of information to producers will make all parties can integrate and doing better planning to distribute the product. By this means, new concept and polity is developed and called vendor managed inventory

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