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http://dx.doi.org/10.5394/KINPR.2013.37.3.321

A Combined Optimization/Simulation Approach to the Reconfiguration of Express Delivery Service Network for Strategic Alliance  

Ko, Chang-Seong (Department of Industrial & Management Engineering, Kyungsung University)
Kim, Hong-Bae (Department of Industrial & Management Engineering, Kyungsung University)
Ko, Hyun-Jeung (Department of Logistics, Kunsan National University)
Abstract
As the market of express delivery services expands rapidly, delivery service companies are exposed to severe competition. As a result of the surplus of delivery companies, they are struggling with remaining competitive at a reasonable price with appropriate level of customer satisfaction. To cope with competition pressures, a strategic alliance is suggested as an effective solution to the challenges faced by small and medium enterprises (SMEs) in express delivery services. Therefore, this study suggests a combined optimization and simulation approach to the reconfiguration of an express delivery service network for strategic alliance with respect to strategy partnership of closing/keeping service centers among companies involved and adjustments of their cutoff times. An illustrative numerical example is presented to demonstrate the practicality and efficiency of the approach.
Keywords
network reconfiguration; express delivery service; strategic alliance; combined optimization/simulation; genetic algorithm;
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Times Cited By KSCI : 2  (Citation Analysis)
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