Cold Chain Logistics Distribution Network Planning Subjected to Cost Constraints

Abstract

In order to reduce the loss in the circulation of agricultural products, and to reduce the total cost, this article minimizes the operation cost by establishing an objective function when designing the cold chain logistics distribution network. Considering the characteristics of the cold chain products, this paper regards construction cost of network nodes, transportation cost and damage cost as the main factors in establishing an objective function. As the cold chain logistics is correlated to the demand of service time, this article comes up with a concept of "service radius", which transformed the transportation time between logistics nodes into the service radius of logistic nodes. The model is verified through a series of constraint conditions to express the relationship between the various decision variables. An example is given in the end, which demonstrates the application of this model in a vegetable firm distribution logistics network planning. The final computation results illustrated that the model is effective.