The application of linear programming by the General Electric Company to efficiently allocate routes to trucking companies
by Xu Yang; Sunderesh S. Heragu; Gerald W. Evans; Mark D. Shirkness; Anna Coats
European J. of Industrial Engineering (EJIE), Vol. 7, No. 1, 2013

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]

Online publication date: Fri, 28-Feb-2014

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