Reducing Logistics Costs at General Motors

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 E...

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Bibliographic Details
Published in:	Interfaces (Providence) Vol. 17; no. 1; pp. 26 - 47
Main Authors:	Blumenfeld, Dennis E, Burns, Lawrence D, Daganzo, Carlos F, Frick, Michael C, Hall, Randolph W
Format:	Journal Article
Language:	English
Published:	Linthicum INFORMS 01-01-1987 The Institute of Management Sciences and the Operations Research Society of America Institute for Operations Research and the Management Sciences
Subjects:	Automobile industry Capital costs Carrying costs Case studies Costs Decision making Distribution engineering Divisions Franz Edelman Award for Management Science Achievement Freight Industrial plants Inventories inventory/production: applications Logistics Management science route selection Shipments Shipping Shipping costs Transportation costs transportation: materials handling Trucking Warehouses Warehousing
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Summary:	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.
ISSN:	0092-2102 2644-0865 1526-551X 2644-0873
DOI:	10.1287/inte.17.1.26