Using an Algorithm to Optimize the Utility of Container Inventory through Virtual Container Yard (VCY)

Abstract

The virtual container yard is an innovative tool that reduces the cost of empty reposition cost of container shipping lines. This concept is underpinning the container interchange between carriers. This paper evaluates the feasibility of introducing an algorithm to optimize the virtual container yard. A combination of qualitative, quantitative approach has been applied and dimension reduction factor analysis was used to analyze data. The container shipping lines may reduce the cost of container reposition by 15-20 percent. Through the virtual container yard. This study reveals key factors relevant to software application that may directly influence the new container management tool namely, virtual container yard as the concept needs a computer platform to operate it in the commercial context.