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The implication of the stochastic gross-profit-per-day objective on the cargo ship profitability, capacity, and speed

The implication of the stochastic gross-profit-per-day objective on the cargo ship profitability,... This paper aims to study the implication of the stochastic gross-profit-per-day objective on the ship profitability and the ship capacity and speed.Design/methodology/approachThe paper has used the mathematical model and the solution methodology given by El Noshokaty, 2013, 2014, 2017a, 2017b, and SOS, 2019.FindingsThe paper finds that if the ship owner follows the rate concept and the cargo demand forecast, he can improve the profitability of his company and be able to select the proper capacities and speeds for the ships used.Research limitations/implicationsThe findings are not only useful for the shipping or other cargo transport companies but also for businesses like gas reservoir development, car assembly lines in the industry, cooperative farming and crop harvesting in agriculture, port cargo handling in trade and road paving in construction.Originality/valueThe contribution of this paper lies in notifying the ship owners of the possible profitability improvement and the consequences of building ships of larger capacities and slower speeds. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Maritime Business Review Emerald Publishing

The implication of the stochastic gross-profit-per-day objective on the cargo ship profitability, capacity, and speed

El Noshokaty, Said
Maritime Business Review , Volume 4 (3): 24 – Sep 18, 2019
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References (41)

Publisher
Emerald Publishing
Copyright
© Pacific Star Group Education Foundation.
ISSN
2397-3757
DOI
10.1108/mabr-04-2019-0016
Publisher site
See Article on Publisher Site

Abstract

This paper aims to study the implication of the stochastic gross-profit-per-day objective on the ship profitability and the ship capacity and speed.Design/methodology/approachThe paper has used the mathematical model and the solution methodology given by El Noshokaty, 2013, 2014, 2017a, 2017b, and SOS, 2019.FindingsThe paper finds that if the ship owner follows the rate concept and the cargo demand forecast, he can improve the profitability of his company and be able to select the proper capacities and speeds for the ships used.Research limitations/implicationsThe findings are not only useful for the shipping or other cargo transport companies but also for businesses like gas reservoir development, car assembly lines in the industry, cooperative farming and crop harvesting in agriculture, port cargo handling in trade and road paving in construction.Originality/valueThe contribution of this paper lies in notifying the ship owners of the possible profitability improvement and the consequences of building ships of larger capacities and slower speeds.

Journal

Maritime Business Review – Emerald Publishing

Published: Sep 18, 2019

Keywords: Stochastic optimization; Gross profit-per-day objective; Ship capacity; Ship profitability; Ship speed

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