Title: A prototype of a hierarchical global logistics network planning model

Authors: Jiuh-Biing Sheu, Anter Y.S. Lin, Yi-Ju Chen

Addresses: Institute of Traffic and Transportation, National Chiao Tung University, F4, 114, Sec. 1, Chung Hsiao W. Rd, Taipei 10012, Taiwan, ROC. ' Institute of Traffic and Transportation, National Chiao Tung University, F4, 114, Sec. 1, Chung Hsiao W. Rd, Taipei 10012, Taiwan, ROC. ' Institute of Traffic and Transportation, National Chiao Tung University, F4, 114, Sec. 1, Chung Hsiao W. Rd, Taipei 10012, Taiwan, ROC

Abstract: In this article, we present a prototype Global Logistics (GL) networks planning model in which the GL facilities such as hubs and depots are hierarchically characterised. The proposed method is developed based on the fundamentals of hierarchical cluster analysis and integer programming techniques to determine the corresponding types, locations and numbers of service areas of facilities involved in the proposed GL networks with the goal of minimising the corresponding costs and risks of network configurations. Particularly, the potential risk-oriented costs such as macro-environmental-risk and micro-operational-risk costs are taken into account in the proposal model. In addition, a case study aiming at air express delivery enterprises is conducted to demonstrate the applicability of the proposed methodology.

Keywords: global logistics; hierarchical networks; network configurations; international express delivery; network planning; cluster analysis; integer programming; risk assessment; risk-oriented costs; air express delivery.

DOI: 10.1504/IJRAM.2008.021374

International Journal of Risk Assessment and Management, 2008 Vol.10 No.3, pp.206 - 223

Published online: 20 Nov 2008 *

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