A Study on Improving the Efficiency of Logistics Networks in Express Package Deliveries

Ko, Chang Seong; Chung, Ki Ho; Ko, Hyun Jeung

Journal of Navigation and Port Research 2012;36(4):305-311.
Published online May 31, 2012.

A Study on Improving the Efficiency of Logistics Networks in Express Package Deliveries

Chang Seong Ko, Ki Ho Chung, Hyun Jeung Ko

Abstract

The market competition of express package deliveries in Korea is severe because a large number of companies have entered into the market. This study thus suggests an approach to the reconfiguration of express service networks with respect to the strategy partnership of closing/keeping service centers among companies involved and the adjustments of their cutoff times. For this we propose an integer programming model and a genetic algorithm based solution procedure for allowing companies involved to maximize their incremental profit. An illustrative numerical example is presented to demonstrate the practicality and efficiency of the proposed model.

Key Words: strategic partnership;cutoff time;express package deliveries;reconfiguration of logistics network