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Article Critique Of UPS Air Network Optimization Article Critique

When reviewing the UPS article, the first comment is related to the sheer speed in which UPS was able to grow its Air Fleet. The ability for the company to invest heavily in its air fleet has provided the organizations with a large sustainable competitive advantage in the marketplace. For one, as the article illustrates, e-commerce trends continue to be a significant tailwind as it relates to packaging volume growth. E-commerce behemoths such as Amazon, eBay, and even Walmart rely heavily on the UPS network to deliver packages in a very in an efficient and cost-effective manner. This large demand for package delivery couple with high adoptions rates globally has required UPS to invest heavily in its air fleet. Air transportation is very unique relative to other forms due primarily to its speed and efficiency. Airlines, particularly those flying from central hubs can delivery packages in a much more cost-effective manner than trucking for instance. In addition, this mode of transportation is also free for large scale delays such as traffic jams or other instances beyond the control of the carrier. Finally, air...

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This is particularly true for international commerce that requires the exchange of goods...…that aircraft are becoming larger and able to hold larger quantities, but in addition, the security of packaging is becoming much more of a concern. Here, packages that contain chemicals that could be harmful to society or items that are related to chemical, nuclear or biological warfare can enter potentially harm others. These considerations ultimately must be addressed by UPS as the sheer volume of packages continues to increaser overtime. Likewise, the need to properly vet packages to ensure the safety and security of employees and flight crews is also important. The juxtaposition between safety and speed makes optimizing the UPS flight network…

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1. Barnhart, Cynthia, Niranjan Krishnan, Daeki Kim, Keith A. Ware. 2002b. Network design for express shipment delivery. Comput. Optim. Appl. 21(3) 239–2622. Crainic, Teodor G. 2000. Service network design in freight transportation. Eur. J. Oper. Res. 122(2) 272–288

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