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A Study on Network Optimization of Parcel Service Industry

Jo Yonghun 1 Park Dongjoo 2 박형준 2 Park, Chanik 3 엄인섭 3

1서울시립대학교 교통공학과
2서울시립대학교
3한진물류연구원

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ABSTRACT

Recently, an explosive growth in electronic commerce, telemarketing, and TV home shopping industries has brought an increase of consumer's need of direct shipment of purchased goods by parcel service. Although there exist a countless number of different starting points and destinations in the parcel service, to build an efficient hub network is important in aspects of not only speedy pickup and delivery but also operational cost. However, most of all companies made decision on the optimum number of distribution centers, their locations and sizes, and network strategy without any detailed analysis procedures. They made decisions by using traditional experiences. The purposes of this study are to build a mathematical model that could reflect the characteristics of cargo transportation and transportation economies of scale and to apply the model to the domestic express parcel service industry. It is assumed that parcel delivery service used less than two hub terminals as its analysis target and the hub network designed to make a single allocation. In addition, this study applied the model to the LINGO, an optimization package, after using the Heuristic method, which is to simplify a network by grouping into sub-terminals.

Citation status

* References for papers published after 2022 are currently being built.

This paper was written with support from the National Research Foundation of Korea.