REDUCING LOGISTICS COSTS AT GENERAL MOTORS

Research is described that was directed towards developing a method that would help GM's Delco division determine the best shipment sizes and routes for its products. First, an understanding was developed of the way transportation and inventory costs depend on shipment sizes and routes. The trade-offs between transportation and inventory costs on complex networks was studied, as well as the sensitivity of costs to system conditions. The research first focused on the simplest type of network and then gradually considered more complex networks. The decision tool, TRANSPART, allowed Delco to conveniently examine cost impacts of different shipping strategies. It contains the model for analyzing transportation and inventory cost trade-offs and the solution technique for determining the minimum cost for the entire network. This report describes the research, the results, the impacts of the results on Delco, and corporate-wide implementation. More complex networks are described, and the impacts on General Motors are summarized.

• Corporate Authors:

  General Motors Corporation

  Research and Development Center, 30500 Mound Road
  Warren, MI  United States  48090

  University of California, Berkeley

  Berkeley, CA  United States  94720
• Authors:
  • Blumenfield, D E
  • Burns, L D
  • FRICK, M C
  • Daganzo, C F
  • Hall, R W
• Publication Date: 1986-4-4

Media Info

• Features: Appendices; Figures; References;
• Pagination: 27 p.

Subject/Index Terms

• TRT Terms: Alternatives analysis; Computer programs; Costs; Freight transportation; Impact studies; Inventory; Logistics; Mathematical models; Networks; Routes; Savings; Shipping
• Uncontrolled Terms: Models
• Subject Areas: Finance; Freight Transportation; Highways; Marine Transportation; Planning and Forecasting; Society; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00458182
• Record Type: Publication
• Files: TRIS
• Created Date: Sep 30 1987 12:00AM