This paper studies container fleet management for an oil supplier. The demand and spot freight rate are random. The supplier must adjust charter contracts and options to manage capacity shortage. The objective is to minimize weighted, conditional value-at-risk.

The authors formulate the problem as a nonlinear program. To simplify the computation, they use simulation to generate scenarios for linearizing the nonlinear program. They also calibrate the model with real data and numerically show that properly chosen portfolio of contracts and options can reduce risks.

I applaud the authors’ effort to tackle a realistic operational problem with well-known methods. But that alone is insufficient for publication. Unless I misread, the paper makes neither theoretical nor managerial contributions, in any significant sense.

Indeed, as its literature review session shows (the journals researchers barely read),  the paper is targeting a wrong audience. Perhaps application oriented journals are more appropriate outlets.



[Antelope Canyon, 8/07/2009]


  1. I see you have begun to follow me. :) I have looked over a few of your entries and wonder if I can understand them. I like your statement “Life is either a daring adventure or nothing.” And that alone should be worth my trying. ;)
    I hope I have something to offer you. You have posted some interesting pictures and that could tempt me to come around for another look.
    Happy Blogging!

    Liked by 1 person

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