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Hybrid Multiple Hub-and-Spoke Vehicle Routing Model for Hyundai Mobis Automotive Service Parts Transportation Planning  

Lee, Yong-Dae (현대모비스 경영혁신실)
Jeong, Hyun-Jong (현대모비스 경영혁신실)
Son, Young-Soo (현대모비스 부품물류지원팀)
Yoon, Chi-Whan (현대모비스 경영혁신실)
Publication Information
Korean Management Science Review / v.28, no.3, 2011 , pp. 1-13 More about this Journal
Abstract
Hub-and-spoke transportation network is a powerful and useful network structure that takes full advantage of economies of scale on routes between hubs. In recent studies, the network structure is extended to hybrid hub-andspoke that allows direct transportation between spokes. In this study, we considered more extended network structure which is called hybrid multiple hub-and-spoke that has multiple hubs and allows direct transportation between spokes. We developed a mathematical optimization model for automotive service parts transportation planning under hybrid multiple hub-and-spoke network structure. The model suggests a long-term transportation route planning and a short-term vehicle assignment planning. The model is verified by simulation and validated in real world application to Hyundai Mobis automotive service parts transportation planning. From the simulation result, the model reduced the transportation cost about 24.7%, the total distance about 6.8% and the CO2 emissions about 8.8%. In real world application for 6 months from July to December 2010, the model reduced the transportation cost about 9.1% by changing the long-term transportation route without daily vehicle assignment planning.
Keywords
Hub-and-Spoke; Transportation Management; Supply Chain Management;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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