Reducing Logistics Costs at General Motors
INFORMS Journal on Applied AnalyticsPublished 1 February 1987
Dennis E. Blumenfeld, Lawrence D. Burns, Carlos F. Daganzo, Michael C. Frick, Randolph W. Hall
Citations125
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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
EngineeringBusiness, Management and Accounting