Title :
Compromised network design model for the strategic alliance of service centers and consolidation terminals in express courier services
Author :
Chung, Ki Ho ; Ko, Hyun Jeung ; Ko, Chang Seong ; Ferdinand, Friska Natalia
Author_Institution :
Dept. of Manage. Inf. Syst., Kyungsung Univ., Busan, South Korea
Abstract :
A direct shipment via express courier is expected to be an area with huge sales potential in the near future. In Korean market, many domestic companies of various sizes have been fiercely competing to extend their own market share. Currently offering only international delivery services, moreover, foreign companies with a higher level of customer services are expected to escalate the competition by entering the market of domestic delivery. These competitive rivalry and price pressure have made market conditions tough and margins under severe pressure. To cope with these substantial competition pressures, we propose strategic alliance as an effective solution to the challenges faced by small and medium express courier service companies. An integer programming model for compromised network design and its solution procedure based on maxmin and maxsum criteria are developed respectively. The applicability and efficiency of the proposed model are demonstrated through an illustrative numerical example.
Keywords :
customer services; goods distribution; integer programming; sales management; compromised network design; consolidation terminals; customer services; direct shipment via express courier; express courier services; integer programming; sales potential; service centers; strategic alliance; Biological system modeling; Companies; Linear programming; Mathematical model; Merging; Numerical models; Resource management; compromised network design; consolidation terminal; express courier service; service center; strategic alliance;
Conference_Titel :
Computers and Industrial Engineering (CIE), 2010 40th International Conference on
Conference_Location :
Awaji
Print_ISBN :
978-1-4244-7295-6
DOI :
10.1109/ICCIE.2010.5668246