Analysis for supply hub in industrial cluster: Classic vs. new perspective

An Industrial Cluster (IC) is a group of similar and interconnected companies in a particular field located in a geographic concentration to share common resources. The relationship of supply chain management (SCM) and ICs are not sufficiently investigated mathematically so far. In this research, Supply Hub in Industrial Cluster (SHIC) is proposed as a common provider of warehousing and logistics services to optimize the interactions of enterprises located within ICs. The experimental results show that the proposed model dominates the classic supply chain model through merging storage space and consolidation shipment.