Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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A Recursive Optimization/Simulation Procedure for Express Courier Service Network Design : Determination of Terminal Capacity and Cut-off Time

택배 네트워크 설계를 위한 최적화/시뮬레이션 반복기법 : 화물터미널 용량과 수주마감시간 결정

  • Ko, Chang Seong (Department of Industrial Engineering, Kyungsung University) ;
  • Lee, Hee Jeon (Department of Industrial Engineering, Kyungsung University)
  • 고창성 (경성대학교 산업공학과) ;
  • 이희정 (경성대학교 산업공학과)
  • Published : 2007.06.30
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Abstract

While demands for express couriers service are rapidly increasing due to recent progress of electronic commerce, express courier service companies are struggling to take a larger market share through ongoing improvement in their service processes. Cut-off time is the time limit that all orders delivered before the limit are guaranteed for the delivery within the very next day. Extending cut-off time for express service centers can provide the express company with increase of total sales, but it may also cause increasing the possibility not to satisfy customer needs due to work delay in the consolidation terminal. We develop a design model for express courier service network based on a recursive optimization/simulation procedure. With the optimization model, we seek key design parameters such as the cut-off time for express service centers and the capacity of the consolidation terminal maximizing total sales profit while satisfying the desired level of performances. With the simulation model, we consider the dynamic nature of the network and obtain relationships between the design parameters and the performance measures with the multiple linear regression. The validity of the model is examined with an example.

Keywords

References

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