Strategic Partnership Based Network Design in Express Delivery Services: Monopoly of Service Centers and Separate Pick-up and Delivery Routing  

Oleh:

Ferdinand, Friska Natalia ; Kim, Young Jin ; Lee, Eun Gyeong ; Ko, Chang Seong

Jenis: Article from Proceeding
Dalam koleksi: The 14th Asia Pacific Industrial Engineering and Management Systems Conference (APIEMS), 3-6 December 2013 Cebu, Philippines, page 1-8.
Topik: Express Delivery Service; Strategic Partnership; Monopoly; Separate Pick-up and Delivery; Genetic Algorithm
Fulltext: 1175.pdf (502.96KB)

Isi artikel

Collaboration has recently attracted a great deal of attention as an effective way to secure competitive advantage for companies with limited resources. The small and medium sized companies may benefit from resourse-sharing for facility operation, which is a typical example of collaboration. In the Korean express delivery service market, many domestic companies of small and medium sizes are also interested in collaboration through sharing resources such as line-haul vehicles and service centers. This study investigates the design of delivery service network considering collaboration of sharing service centers among competitors. Typcially, service centers are directly linked to a consolidation terminal. However, some of them with geographical disadvantages are visited on a milk run from/to the consolidation terminal, which can be represented as a traditional pick-up and delivery problem (PDP). Even though operated to provide the quality of service, most of such distant service centers may not contribute to profit. It is thus suggested that only one company keeps operating a service center for such a distant location (so-called ‘monopoly of service center’) and other companies in collaboration share it to save maintenance cost. In addition, an incremental profit may be realized by setting up the visit schedule of pick-up and delivery separately. This study proposes the design of express delivery service networks considering two main factors: (i) strategic partnership among express delivery service companies by creating the monopoly of service centers in PDP of line-haul vehicles and (ii) separate pick-up and delivery routing for profit maximization. A solution heuristic is suggested based on a Genetic Algorithm (GA) using a hybrid chromosome representation of binary numbers and strings. Its applicability and performance is demonstrated through a numerical example problem.

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