TY - GEN
T1 - Supply chain network design and transshipment hub location for third party logistics providers
AU - Kwon, Seungwoo
AU - Park, Kyungdo
AU - Lee, Chulung
AU - Kim, Sung Shick
AU - Kim, Hak Jin
AU - Liang, Zhong
PY - 2006
Y1 - 2006
N2 - Transshipment hubs are the places where cargo can be re-consolidated and transportation modes can be changed. Transshipment hubs are widely used in logistics industry. In this article, we consider a supply chain network design problem for a third party logistics provider in which we obtain the locations of transshipment hubs among promising hub locations for the objective of minimizing the total system cost that includes the transportation cost, the fixed cost and the processing cost. In the problem, the unit cost of transporting cargo between a pair of origin-destination is non-linear and is a decreasing step function, and each unit cargo through the transshipment hub is charged a fixed processing cost. The problem is considered a mixed integer programming problem. However, due to the complexity of the problem, a heuristic solution approach is proposed. The proposed solution is then implemented to a third party logistics provider and their experience shows that significant cost savings are obtained, compared with the current practice.
AB - Transshipment hubs are the places where cargo can be re-consolidated and transportation modes can be changed. Transshipment hubs are widely used in logistics industry. In this article, we consider a supply chain network design problem for a third party logistics provider in which we obtain the locations of transshipment hubs among promising hub locations for the objective of minimizing the total system cost that includes the transportation cost, the fixed cost and the processing cost. In the problem, the unit cost of transporting cargo between a pair of origin-destination is non-linear and is a decreasing step function, and each unit cargo through the transshipment hub is charged a fixed processing cost. The problem is considered a mixed integer programming problem. However, due to the complexity of the problem, a heuristic solution approach is proposed. The proposed solution is then implemented to a third party logistics provider and their experience shows that significant cost savings are obtained, compared with the current practice.
UR - http://www.scopus.com/inward/record.url?scp=33745901617&partnerID=8YFLogxK
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U2 - 10.1007/11751595_97
DO - 10.1007/11751595_97
M3 - Conference contribution
AN - SCOPUS:33745901617
SN - 3540340750
SN - 9783540340751
T3 - Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
SP - 928
EP - 933
BT - Computational Science and Its Applications - ICCSA 2006
PB - Springer Verlag
T2 - ICCSA 2006: International Conference on Computational Science and Its Applications
Y2 - 8 May 2006 through 11 May 2006
ER -