ðs; SÞ policy model for liner shipping refueling and sailing speed optimization problem

This work expounds on implementing an effective dynamic ðs; SÞ policy to solve a liner shipping refueling and speed determination problem under both bunker prices and consumption uncertainties. While solving an optimization model which incorporates a continuous distribution is extremely challenging, we use sample average approximation method to solve it. However, the resulting problem is still a very large-scaled problem. Therefore, we propose two variations of the progressive hedging algorithm to tackle it. Numerical results show that our solution method is efficient and, in addition, our dynamic ðs; SÞ policy model has significant cost reduction potential compared to stationary models. 2014 Elsevier Ltd. All rights reserved.