Simulation of unit loading device inventory in airline operations

Commercial airlines often encounter imbalances in their inventory of unit loading devices (ULDs). A stochastic simulation model was developed to evaluate inventory policies. The structure of the simulation model is described. We evaluate a minimum ULD loading configuration policy and demonstrate how it reduces ULD shortages and helps balance ULD network flow and inventory. As a result, airlines can reduce operating expenses and improve customer service. Finally, we give future directions for studying ULD inventory.