Reducing Logistics Costs at General Motors

Dennis E. Blumenfeld, Lawrence D. Burns, Carlos F. Daganzo, Michael C. Frick and Randolph W. Hall
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Dennis E. Blumenfeld: Operating Systems Research Department, General Motors Research Laboratories, Warren, Michigan 48090
Lawrence D. Burns: Operating Systems Research Department, General Motors Research Laboratories, Warren, Michigan 48090
Carlos F. Daganzo: Department of Civil Engineering, University of California, Berkeley, California 94720
Michael C. Frick: Operating Systems Research Department, General Motors Research Laboratories, Warren, Michigan 48090
Randolph W. Hall: Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720

Interfaces, 1987, vol. 17, issue 1, 26-47

Abstract: Automobile and truck production at General Motors involves shipping a broad variety of materials, parts, and components from 20,000 supplier plants to over 160 GM plants. To help reduce logistics costs at GM, the decision tool TRANSPART was developed. In its initial application for GM's Delco Electronics Division, TRANSPART identified a 26 percent logistics cost savings opportunity ($2.9 million per year). Today, TRANSPART II---a commercial version of the tool---is being used in more than 40 GM plants.

Keywords: inventory/production: applications; transportation: materials handling; route selection (search for similar items in EconPapers)
Date: 1987
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