Solving the location problem of front distribution center for omni-channel retailing

Huang, Jikai; Shi, Xin

doi:10.1007/s40747-020-00260-2

Cited by 6 publications

(3 citation statements)

References 47 publications

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“…Bayram et al [17] considered a new retail enterprise with an online channel and a physical channel, and studied the fulfillment of customer orders with the goal of maximizing the retailer's overall profit. For the location problem, Huang et al [10] studied front distribution center location under an omnichannel retailing model by considering such factors as facility capacity, demand, and rent fluctuation. There is little research on offline physical store location under the BOPS omnichannel model.…”

Section: New Retail Modelmentioning

confidence: 99%

“…The location of offline physical stores is one of the key issues for online retailers to expand the BOPS omnichannel retail model. Choosing a reasonable location for physical stores is helpful to control enterprise costs and improve their service level [10]. Under the BOPS omnichannel retail model, physical store location and network distribution are a cooperative system, which jointly build the whole omnichannel sales and bring a higher quality shopping experience to consumers.…”

Section: Introductionmentioning

confidence: 99%

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Location Optimization of Offline Physical Stores Based on MNL Model under BOPS Omnichannel

Wan

Zhang

Liu

et al. 2022

JTAER

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With the continuous upgrading of consumer demand and retail modes, more and more retailers are switching to an omnichannel retail mode. In order to study the location problem of offline physical stores of online retail enterprises that plan to implement the BOPS (Buy Online and Pickup in Store) omnichannel retail model, this paper considers consumers’ choice behavior under the omnichannel retail model; uses the MNL (Multinomial Logit) model to depict customers’ choice behavior between the online channel, BOPS channel, and offline physical channel; and constructs a location optimization model of offline physical stores with the goal of minimizing the enterprise’s cost. According to the characteristics of the model, an improved genetic algorithm was designed; the algorithm was improved on chromosome selection mode, crossover, and mutation rules. Finally, an example is calculated, and the physical store location scheme of a retail enterprise and the vehicle routing optimization scheme under the two-level distribution network are obtained, which verifies the effectiveness of the model and algorithm and provides a scientific reference for the physical store location decision of online retail enterprises planning to implement the BOPS omnichannel retail model. The impact of freight, return rate, and service level of physical stores on the location of offline physical stores is analyzed. The results show that in the process of expanding offline physical stores to implement the BOPS omnichannel retail model, online retail enterprises can reduce enterprise costs by improving the freight level and service level of the physical store. The higher the return rate of the online channel, the more necessary it is to expand offline physical stores, and the lower the enterprise cost. At the same time, management suggestions are put forward for the enterprise operation under the BOPS omnichannel retail mode.

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Section: New Retail Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Location Optimization of Offline Physical Stores Based on MNL Model under BOPS Omnichannel

Wan

Zhang

Liu

et al. 2022

JTAER

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“…One of the last papers on the omni-channel distribution design problem was published by Huang and Shi [27]. In this research, a bi-objective programming model was constructed to minimize the distribution costs from the facilities to recipients, and to minimize the fixed cost of the facility's location, related to its capacity, demand, and rent fluctuation.…”

Section: State-of-the-art Distribution System Using Several Commercial Channelsmentioning

confidence: 99%

Optimisation of the Two-Tier Distribution System in Omni-Channel Environment

Sawicki

Sawicka

2021

Energies

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This paper deals with the problem of the design and configuration of a distribution system that supports the delivery of goods to customers using various commercial channels. In this sense, a modelled distribution system, called an omni-channel distribution system, should ensure the delivery of the same products in different ways while guaranteeing its highest efficiency. The authors propose a single-criterion mixed-integer programming model for the configuration of a complex distribution system of goods in an omni-channel environment. A minimized cost function, composed of key logistics elements including transport, warehouse location, and manipulation processes, is the objective function. The model was experimentally verified, and as a result, potential savings of around 5–8% of the omni-channel design distribution system costs versus the multi-channel distribution system costs were identified. In the paper, an extended sensitivity analysis is also performed to show how specific parameters of the model can change the final recommendation.

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Enhancing home delivery of emergency medicine and medical supplies through clustering and simulation techniques: A case study of COVID-19 home isolation in Bangkok

Kritchanchai,

Srinon,

Kietdumrongwong

et al. 2024

Heliyon

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Solving the location problem of front distribution center for omni-channel retailing

Cited by 6 publications

References 47 publications

Location Optimization of Offline Physical Stores Based on MNL Model under BOPS Omnichannel

Location Optimization of Offline Physical Stores Based on MNL Model under BOPS Omnichannel

Optimisation of the Two-Tier Distribution System in Omni-Channel Environment

Enhancing home delivery of emergency medicine and medical supplies through clustering and simulation techniques: A case study of COVID-19 home isolation in Bangkok

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