Supply chain network design and transshipment hub location for third party logistics providers

Seungwoo Kwon, Kyungdo Park, Chul Ung Lee, Sung Shick Kim, Hak Jin Kim, Zhong Liang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Citations (Scopus)

Abstract

Transshipment hubs are the places where cargo can be re-consolidated and transportation modes can be changed. Transshipment hubs are widely used in logistics industry. In this article, we consider a supply chain network design problem for a third party logistics provider in which we obtain the locations of transshipment hubs among promising hub locations for the objective of minimizing the total system cost that includes the transportation cost, the fixed cost and the processing cost. In the problem, the unit cost of transporting cargo between a pair of origin-destination is non-linear and is a decreasing step function, and each unit cargo through the transshipment hub is charged a fixed processing cost. The problem is considered a mixed integer programming problem. However, due to the complexity of the problem, a heuristic solution approach is proposed. The proposed solution is then implemented to a third party logistics provider and their experience shows that significant cost savings are obtained, compared with the current practice.

Original languageEnglish
Title of host publicationLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Pages928-933
Number of pages6
Volume3982 LNCS
DOIs
Publication statusPublished - 2006 Jul 19
EventICCSA 2006: International Conference on Computational Science and Its Applications - Glasgow, United Kingdom
Duration: 2006 May 82006 May 11

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume3982 LNCS
ISSN (Print)03029743
ISSN (Electronic)16113349

Other

OtherICCSA 2006: International Conference on Computational Science and Its Applications
CountryUnited Kingdom
CityGlasgow
Period06/5/806/5/11

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ASJC Scopus subject areas

  • Computer Science(all)
  • Biochemistry, Genetics and Molecular Biology(all)
  • Theoretical Computer Science

Cite this

Kwon, S., Park, K., Lee, C. U., Kim, S. S., Kim, H. J., & Liang, Z. (2006). Supply chain network design and transshipment hub location for third party logistics providers. In Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics) (Vol. 3982 LNCS, pp. 928-933). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 3982 LNCS). https://doi.org/10.1007/11751595_97