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http://dx.doi.org/10.7232/JKIIE.2011.37.4.304

Compromised Network Design Model for the Strategic Alliance of Service Centers and Consolidation Terminals in Express Courier Services  

Chung, Ki-Ho (Department of Management Information Systems, Kyungsung University)
Ko, Hyun-Jeung (Department of Logistics, Kunsan National University)
Ko, Chang-Seong (Department of Industrial and Management Engineering, Kyungsung University)
Publication Information
Journal of Korean Institute of Industrial Engineers / v.37, no.4, 2011 , pp. 304-310 More about this Journal
Abstract
The express courier business in Korea has been recognized as one of promising business sectors with the annual growth rate of over 10 percent since 2001. As such many domestic and foreign companies have been established and are fiercely competing to extend their own market share. The severe competition has forced them to focus on achieving cost competitiveness and high level of customer service. Small and medium-sized enterprises( SMEs) with relatively poor network infrastructure in particular are facing tougher challenges to cost reduction and efficiency improvement in their logistics networks. Strategic alliances among SMEs may be an effective way to cope with these challenges. Therefore this study proposes an integer programming model for compromised network design and its solution procedure based on maxmin and maxsum criteria for strategic alliances. The applicability and efficiency of the proposed model are demonstrated through an illustrative numerical example.
Keywords
Express Courier Service; Compromised Network Design; Strategic Alliance; Service Center; Consolidation Terminal;
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