Title: The application of linear programming by the General Electric Company to efficiently allocate routes to trucking companies
Authors: Xu Yang; Sunderesh S. Heragu; Gerald W. Evans; Mark D. Shirkness; Anna Coats
Addresses: Center for Transportation and Logistics, Massachusetts Institute of Technology, 77 Massachusetts Avenue, E40-276 Cambridge, MA 02139, USA ' Department of Industrial Engineering, University of Louisville, Louisville, KY 40292, USA ' Department of Industrial Engineering, University of Louisville, Louisville, KY 40292, USA ' General Electric Appliance and Lighting, GE Appliance Park, AP3-232, Louisville, KY 40225, USA ' General Electric Appliance and Lighting, GE Appliance Park, AP3-232, Louisville, KY 40225, USA
Abstract: The appliance and lighting group of the General Electric (GE) Company allocates its shipping truckload to 17 different trucking companies over 701 different routes from one of its nine terminals. A sequence of several linear programming models was developed to help the management of the appliance and lighting division develop an optimal allocation. Two user-friendly interfaces were also developed to aid GE management in the use of one of the models. The tool is being used at GE and significant savings (approximately 15.5% of shipping costs) are possible with the optimal truckload allocation solution provided by the model. [Received 8 May 2010; Revised 2 June 2011; Accepted 15 June 2011]
Keywords: truckload allocation; linear programming; distribution; third party logistics; 3PL; General Electric Company; route allocation; trucking companies; modelling; trucking routes.
European Journal of Industrial Engineering, 2013 Vol.7 No.1, pp.38 - 54
Published online: 28 Feb 2014 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article