Campus Units

Industrial and Manufacturing Systems Engineering

Document Type

Conference Proceeding

Publication Version

Published Version

Publication Date

2019

Journal or Book Title

Proceedings of NY2019 New York Conferences

First Page

33

Last Page

44

Research Focus Area(s)

​Operations Research

Conference Title

The International New York Conference on Engineering and Technology (NY2019)

Conference Date

November 15-17, 2019

City

Albany, NY

Abstract

With the changing climates, numerous broadly defined logistical depots ranging from air and sea ports to bus and train stations all suffer from volatile repair and maintenance costs that are fluctuating and on average increasing over time. At the same time, human-made (i.e., typically governments) policies often influences the repair and maintenance costs as well (e.g., the environmentally friendly disposal policies for the repair and maintenance components). Under these circumstances, we first construct stochastic control models based on binomial lattices when the repair and maintenance costs are following geometric Brownian motion processes while the human-made policies follow Poisson jump processes. From the subsequent analyses, we aim to produce economic implications and managerial insights so as to enhance decision and policy making such as whether and when to expand, contract, mothball, and/or decommission such logistical depots. By conducting a numerical study on the airport re-location, we empirically show how to derive the most economically rational strategy, and to determine the optimal re-location time.

Comments

This proceeding is published as Zhao, Zhuoyi, John Jackman, and K. Jo Min. "Logistic Depot Planning under Repair and Maintenance Cost Uncertainties under Changing Climate." In: Proceedings of NY2019 New York Conferences. Gul Dagci and Kaan Diyarbakirlioglu, editors. Regional Development Studies Institute Inc., New York, 2019. Pages 33-44. ISBN: 978-0-578-61810-4.

Copyright Owner

Regional Development Studies Institute Inc., New York

Language

en

File Format

application/pdf

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Article Location

 
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