Automotive Distribution Network Design: A Support System for Transportation Infrastructure Decision Makers
Eksioglu, S., Eksioglu, B., Walden, C., Jin, M., & Acharya, A. (2010). Automotive Distribution Network Design: A Support System for Transportation Infrastructure Decision Makers. International Journal of Business and Systems Research. 4(4), 379-401.
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 analyze prospective automotive assembly 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 sites, and design competitive incentive packages for auto makers. To demonstrate how this methodology works we use as a case study the state of Mississippi. Computational experiments indicate that sites which have direct access to highways and to at least two major railways, have an advantage in terms of logistics costs. We identify opportunities which exist to improve site competitiveness.