A decision making tool considering risk assessment of sub-contracting agents for an air cargo shipment planning problem

• Published in: Journal of air transport management 2018-06, Vol.69, p.123-136
• Main Authors: Kulak, Osman, Genç, Atakan, Taner, Mustafa Egemen
• Format: Article
• Language: English
• Subjects: Air cargo; Heuristics; Risk assessment; Shipment planning
• ISSN: 0969-6997; 1873-2089
• DOI: 10.1016/j.jairtraman.2018.02.005

Development of an efficient shipment plan for air cargo forwarders is a critical to obtaining considerable integration and consolidation savings and to meeting competitive requirements such as target costs. In this paper, we propose a decision making tool to solve a deterministic air cargo shipment planning problem with risk assessment of sub-contracting agents evaluating possible consolidations and integrations. The decision making tool consists of a risk assessment module based on historical data and a shipment planning module that includes a genetic algorithm (GA). Various benchmark instances are generated based on real life data obtained from a worldwide air cargo company to investigate the performance of the proposed methodology. In conclusion, the proposed methodology provide effective solutions in terms of solution quality and computational time. •This paper focuses on a deterministic air cargo shipment planning problem considering risk assessment of agents.•An air cargo shipment planning model with risk assessment is formulated as a MILP.•A decision making tool is proposed to solve the problem evaluating possible consolidations and integrations.•In conclusion, the proposed methodology provide effective solutions in terms of solution quality and computational time.