Cross-border logistics with fleet management: a goal programming approach

Authors:
Stephen C. H. Leung;Yue Wu;K. K. Lai
Affiliations:
Department of Management Sciences, City University of Hong Kong, Hong Kong;School of Management, University of Southampton, Highfield, Southampton, UK;Department of Management Sciences, City University of Hong Kong, Hong Kong and College of Business Administration, Hunan University, China
Venue:
Computers and Industrial Engineering
Year:
2006

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Abstract

In this paper, we introduce the cross-border logistics problem with fleet management. A major phenomenon of implementation of open-door policy in China is the move of Hong Kong-based manufacturers' production lines to China, crossing the border to take advantages of lower production costs, lower wages and lower rental costs. The finished products are then transshipped to Hong Kong, an efficient logistics hub well-equipped with reliable transportation facility, for exporting. We present a preemptive goal programming model for multi-objective cross-border logistics problem, in which three objectives are optimized hierarchically. We also describe a framework for incorporating decision-makers' opinions for determination of goal priorities and target values. A set of Hong Kong data have been used to test the effectiveness and efficiency of the proposed model. Results demonstrate the decision-makers can find the flexibility and robustness of the proposed model by adjusting the goal priorities with respect to the importance of each objective.