Location Model for Distribution Centers for Fulfilling Electronic Orders of Fresh Foods under Uncertain Demand

Abstract

The problem of locating distribution centers for delivering fresh food as a part of electronic commerce is a strategic decision problem for enterprises. This paper establishes a model for locating distribution centers that considers the uncertainty of customer demands for fresh goods in terms of time-sensitiveness and freshness. Based on the methodology of robust optimization in dealing with uncertain problems, this paper optimizes the location model in discrete demand probabilistic scenarios. In this paper, an improved fruit fly optimization algorithm is proposed to solve the distribution center location problem. An example is given to show that the proposed model and algorithm are robust and can effectively handle the complications caused by uncertain demand. The model proposed in this paper proves valuable both theoretically and practically in the selection of locations of distribution centers.

Evaluation of Supply Chain Using Hierarchical Analysis

“…The results obtained indicate that wholesale turnover for the considered regions of Russia is insignificant when substantiating the differences in the volume of production. However, a lot of works suggest that it is the wholesale that contributes to the promotion of products in the market and its development is important for manufacturers (Sadigh et al, 2013;Wu et al, 2015;Zhang et al, 2017;Ge et al, 2018;Mittal et al, 2018). In the author's opinion, such results indicate an ineffective organization of the sales chain, which largely retained the shortcomings of the centralized distribution system of goods of the Soviet period.…”

“…As noted by scientists, "small-and medium-scale producers have great difficulty in accessing market outlets", "large buyers face logistics and information obstacles" (Ge et al, 2018). Many studies are aimed at determining the most effective path of motion of products from producers to consumers (Wu et al, 2015;Zhang et al, 2017;Mittal et al, 2018). The reason is that "a supply chain, an interrelating network of suppliers, manufacturers, distributors, and customers, plays an important role in competitive markets to satisfy customer demands" (Sadigh et al, 2013).…”

A Fuzzy Bayesian Network Model for Quality Control in O2O e-Commerce

“…Delivery plans mainly include the delivery quantity, object, delivery route and distribution centers location [31], which will impact on the delivery time. If the communication with the customer is not smooth, delivery notice is not timely or delivery of information are wrong, they will enable customers to prepare the goods and the equipment in advance, so that the probability of fresh food damage is reduced after the fresh food arrives at the destination and is unloaded.…”

Establishing Collection and Delivery Points to Encourage the Use of Active Transport: A Case Study in New Zealand Using a Consumer-Centric Approach

“…There have been several FLP studies [53,54] done in the recent years, however, they were focussed on identifying locations mainly for establishing urban consolidation centres (UCCs). Note that although CDPs are also a form of UCCs (in terms of the function to store and consolidate parcels near the consumption areas), the way last-mile deliveries take place via CDPs is different than the way they are done via UCCs [55].…”

“…Therefore, the identification of locations for establishing facilities that require consumers to visit them, must be done based on the minimisation of consumers' distances or costs of travelling to and from those facilities. However, the existing studies [53] were typically done from the service providers' perspective (i.e., maximizing the profit or minimizing delivery costs). For example, Orjuela-Castro et al [56], using a mixed linear programming model, investigated UCCs for distributing perishable food items in Colombia.…”