An optimisation model for a cross-border logistics problem: a case in Hong Kong
An optimisation model for a cross-border logistics problem: a case in Hong Kong
Since the implementation of the open-door policy in China, economic activities between Hong Kong and China have increased dramatically. A major phenomenon of this development is the move of Hong Kong-based manufacturers' production lines to China to take advantage of the lower production cost, lower wages and lower rental costs. However, due to the geographical separation of a border between Hong Kong and China, lorries transporting finished products between China to Hong Kong must pay a cross-boundary fee. In this paper, an optimization model is developed to solve a logistics problem in a Hong Kong-based manufacturing company. The characteristics of similar cross-border logistics problems and the alternatives to transporting products are discussed. To enhance the practical implications of the proposed model, different managerial logistics plans are evaluated according to changes of future policy and situation. The robustness and effectiveness of the developed model are demonstrated by numerical results.
logistics problem, transportation management, vehicle composition, cross-border
393-405
Leung, Stephen C. H.
0611a455-23c2-4a75-a197-adb3e3741957
Wu, Yue
e279101b-b392-45c4-b894-187e2ded6a5c
Lai, K.K.
20379c9f-ac5f-4549-ab91-77722180b971
2002
Leung, Stephen C. H.
0611a455-23c2-4a75-a197-adb3e3741957
Wu, Yue
e279101b-b392-45c4-b894-187e2ded6a5c
Lai, K.K.
20379c9f-ac5f-4549-ab91-77722180b971
Leung, Stephen C. H., Wu, Yue and Lai, K.K.
(2002)
An optimisation model for a cross-border logistics problem: a case in Hong Kong.
Computers & Industrial Engineering, 43 (1-2), .
(doi:10.1016/S0360-8352(02)00081-5).
Abstract
Since the implementation of the open-door policy in China, economic activities between Hong Kong and China have increased dramatically. A major phenomenon of this development is the move of Hong Kong-based manufacturers' production lines to China to take advantage of the lower production cost, lower wages and lower rental costs. However, due to the geographical separation of a border between Hong Kong and China, lorries transporting finished products between China to Hong Kong must pay a cross-boundary fee. In this paper, an optimization model is developed to solve a logistics problem in a Hong Kong-based manufacturing company. The characteristics of similar cross-border logistics problems and the alternatives to transporting products are discussed. To enhance the practical implications of the proposed model, different managerial logistics plans are evaluated according to changes of future policy and situation. The robustness and effectiveness of the developed model are demonstrated by numerical results.
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Published date: 2002
Keywords:
logistics problem, transportation management, vehicle composition, cross-border
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Local EPrints ID: 36307
URI: http://eprints.soton.ac.uk/id/eprint/36307
ISSN: 0360-8352
PURE UUID: 530bdf24-809d-435b-86ac-d3da8a81f510
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Date deposited: 23 May 2006
Last modified: 16 Mar 2024 03:39
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Author:
Stephen C. H. Leung
Author:
K.K. Lai
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