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Operations Research

Operations research (OR) - also referred to as decision science, or management science - applies mathematical disciplines to cost management tasks. It merges engineering and financial approaches - usually to determine the maximum of profit, performance, yield or the minimum of loss, risk, cost (see Wikipedia).
Our OR applications are based on cost models for bulker transport or container liner shipping that we feed to a tailor-made optimizer. The approach is to quantify all key-aspects of a shipment in mathematical terms, compile them into one performance model and find a numeric solution to the cost minimization problem.
For bulk shipments, the antagonistic cost drivers are usually bunker cost (voyage cost) and time-proportional cost (capex & opex), design variables are load-haul speed and back-haul speed.
For container liner operators, the picture becomes more complex and includes the sequence of port calls, cargo characteristics, speeds, transshipments, draughts with some 100.000 design variables for a standard solution.
The results of each OR analysis is
  • the set of voyage parameters that reduces cost to a minimum;
  • a better intuitive understanding of what makes an optimal solution by comparing multiple market scenarios, ships etc.;
  • to better understand the magnitude of key cost drivers and the cost sensitivity w.r.t. to each design variable;
Our OR solutions are For a first approach we suggest you try Eco-Hauls with its relatively few input parameters and only 2 design variables.
Eco-Trips is far more complex and is not available as a web-application.
Please contact us on a quotation for our services.
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date: 2011-11-16
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