Optimization Of Forestry Products Logistics Network Based On Transaction Cost Theory

Forestry is the foundation of national economy. The development of advanced logistics is one of effective approaches to industrialize forestry sector. Logistics of forest product has become one of important factors in the forestry development. At present, theoretical research and practical application of the logistics oriented to forestry remains as the initial stage. There is a key focus on enhancing forestry logistics base on the characteristics of industry, in addition, improving the level of logistics capacity and increasing competitiveness of forestry industry. Clearly in the development of forest logistics, the distribution of logistics network is a fundamental and important task. There are several advantages of the enhanced logistics network which includes reduce unnecessary module of forestry logistics, minimal the cost of logistics, reduce timing of logistics, improve the quality of product and grow the added value. Optimizing the capacity of logistics generates theoretical and practical benefits to both the forestry industry and regional economics.This research has learnt from the existing study in the area of forestry logistics, integrated the series of theory of the transaction cost economics, logistics and supply chain management, logistics network as well as forestry logistics and value chain, meanwhile combined with the practice of forestry logistics. The research has addressed the forestry logistics network optimization, based on the theory transaction cost. The main outcomes can be summarized as follows:1. Construction of forest product logistics network optimization model. Based on the analysis of basic structure of forest product logistics network, forest products logistics network optimization model and advanced model have been created. Forest products logistics network node consists of forest products producer, processing company, logistics center, distribution center and the demanding party. The core challenge of optimizing forest product logistics network is to identify the possible location of the forest products logistics center. In order to optimizing locations, minimizing the cost of logistics has been considered as the objective and in addition, considering other constraints to the site optimization.2. Research on the optimization of forest product logistics distribution and the problem of the scheduling vehicle based the constraints of time windows. Distribution is an important factor to reach out the end user in the forest product logistics network. Generally, it can be divided into two levels:primary facilities distribution lines and second distribution lines. In this paper, it has verified the effectiveness and simplification of the mixed integer programming model based on a practical case. Optimization of forest products transport vehicles is a major problem in the logistics network operation. The research starts from the practical operation of the network of forest product logistics, establishes vehicle scheduling model with time window constraints, and designs the solve model on the genetic algorithm (GA). The results show that, the genetic algorithm can solve the problem with time window constraints of scheduling forest product logistics vehicle.3. Construction of the optimal cost model of integrated forest products logistics network. The model aims to overcome the deficiency of the mixed integer programming model. It considers several key aspects:the node interconnection logistics network, the total of logistics nodes, logistics cost and other factors and the distance between the nodes, in order to achieve the objective of the minimal cost. In the solution, the undirected graph has been transformed into a directed graph of nodes of the logistics between forest product logistics network. The solution model is developed by using the multiple loading algorithms; which then is transformed into Steiner question tree. The final output is to develop an extension of the directed graph model. Through the comparison of the objective function and the constraint conditions of the three models, the third model is more likely to achieve the best tree structure characterization of the logistics cost, and the successive approximation model for solving the optimal. Based on the analysis, a branch cut method is designed to achieve the feasible solutions of tree structure characterization of the logistics cost, and provide an approach for the best budgeting on logistic cost through the integration of forest products logistics network.4. Study on the effectiveness of forest product logistics network optimization. It studied the effectiveness of forest product logistics network optimization, from the impact of market structure, the forestry economic growth and regional economic polarization and diffusion. A game model is constructed in the analysis of market structure effectiveness. An analytical model is created in the analysis of the logistics network optimization of economic growth. The results show that, regardless of the price elasticity is greater than1or less than1of normal, or non normal forest products,"Ji Fenlin" products, forest products logistics network optimization is beneficial to improve the level of forestry industry and promote the forestry economic growth. Forest product logistics network optimization will generate the polarization of regional economy; in addition produce diffusion effect easily.