New Concept of Container Allocation at the National Level: Case Study of Export Industry in Thailand

Abstract

This paper presents container allocation technique of which minimizing the total opportunity loss of an export industry in Thailand. This new allocation concept applies as a strategic management tools at the national level since it is consistent to the characteristics of the container supply chain management in Thailand. The first section of this paper presents the review of facts and problems of container supply chain management. It reveals that containerization system is significant to the international trade as it holds good characteristics of sea transportation. It can transport a lot of products while minimize the damage of goods. Supply chain management of the containerization system presents and shows that there are four main players in managing the container – principal, port, container depot, and customer. After an intensive review of containerization system’s problem, the most common problem that all parties have encountered is an imbalance between demand and supply of container. The well-known solution to the stated problem is relocation of containers between various places using optimization technique, which aims to minimize operation cost. Indeed, those solutions are unable solve the containerization system’s problem in Thailand: lacking their own fleets: having no bargaining power in relocating container between areas as needed. In the present, many of Thai exporters face with losses of sales or profit because they cannot find enough or proper containers to transport their goods to the customer. The authors, therefore, have seen that those problems need to be strategically solved by the government. The limited number of containers must be properly allocated to the exporter with regard to the minimum losses to the economics of the country. The main contributions of this paper are two folds. First, the opportunity losses of the various export industry are indicated when lack of containers, Second, the mathematical model has been formulated using linear programming technique with several constraints, such as, demand, supply, obsolete time, operating cost, lead time etc. The authors hope that the new concept presented in this paper will provide the great contribution for other countries, which face the same problem of Thailand.

Keywords: Container Management, Opportunity Loss, Allocation Problem, Optimization, International Trade