Automotive distribution network design: a support system for transportation infrastructure decision makers

Sandra D. Eksioglu, Burak Eksioglu, Clayton T. Walden, Mingzhou Jin and Ambarish Acharya

International Journal of Business and Systems Research, 2010, vol. 4, issue 4, 379-401

Abstract: Attracting auto assembly plants is very important as it impacts the economy of a state in a number of ways. For example, it creates new jobs and positively impacts state's revenues. This paper proposes a methodology to analyse prospective automotive assembly plant sites from the standpoint of associated logistics costs. A decision support system is developed based on the proposed methodology. The aim is to develop a tool that helps local and state officials to identify ways to improve the outbound distribution system of potential auto assembly plant sites, and design competitive incentive packages for auto makers. To demonstrate how the methodology works we used as a case study the state of Mississippi. Computational experiments indicate that sites which have direct access to highways and to least two major railways, have an advantage in terms of logistics costs. We identify opportunities that exist to improve site attractiveness.

Keywords: automobile industry; decision support systems; DSS; automotive distribution systems; distribution networks; network design; transport infrastructure; automotive assembly plants; plant location; logistics costs; incentive packages; site location. (search for similar items in EconPapers)
Date: 2010
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