| A Combined Optimization/Simulation Approach to the Reconfiguration of Express Delivery Service Network for Strategic Alliance |
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Chang-Seong Ko, Hong-Bae Kim, Hyun-Jeung Ko |
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| Abstract |
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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. |
| Key Words:
network reconfiguration;express delivery service;strategic alliance;combined optimization/simulation;genetic algorithm |
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