Distribution network optimization analysis for Chinese E-commerce enterprise

Abstract

The current study shows that the target of the optimization model of the logistics distribution network is to obtain the minimum vehicle driving distance. They take the total operation cost into consideration, which relates closely to the vehicle driving distance and the unit cost. However in China, those large-scale E-commerce enterprises unusually choose to build their own distribution network. Therefore, the initial cost will be far outnumber the operating cost in a certain time. It takes two factors into account, which are the operating cost and vehicle starting cost, to make up the distribution network optimization model. This paper selects a large-scale E-commerce enterprise in China called GD as the case study. © Springer-Verlag Berlin Heidelberg 2013.