A mathematical model for empty container repositioning network

Empty container repositioning is a critical issue in green logistics due to imbalance trade worldwide mainly due to imbalance in international trade. This situation happens because of import dominant region has a surplus of containers and on the other hand, the export dominant area encounters a shortage of containers. Therefore, the empty container repositioning and arranging the shipping routes are big challenges to shipping companies. In Malaysia, the issues related to the empty container repositioning is not widely investigated among scholars. Hence, this study aims to optimize the total distance of empty container repositioning network in Malaysia. A mixed integer programming model is formulated to minimize the total distance between two inland ports to sixteen industrial parks that are located around the capital city of Malaysia. Only road transportation is used as transportation mode. The result shows that the allocation is made to the closest industrial park with the minimum demand required first. The rest are allocated from another inland port. For the furthest industrial park, the empty containers are sent from both inland port in order to fulfill the total demand and supply.