Study And Application Of Logistics Modulus In Cigarette Logistics And Distribution Systems Optimization

37 years of reform and opening up, China has gradually become the largest country in the world’s tobacco consumption. However, due to the coming end of the WTO’s protection period and the monopoly franchise system, Chinese tobacco industry is facing challenges from the world’s tobacco giants. Establishing modern logistics and providing high-quality services for retailers is an important means to improve the competitiveness of the tobacco companies in cigarette logistics and distribution systems.Firstly, according to the theory of logistics systems, status quo of supply chain logistics management, the development status of logistics modulus and characteristics of tobacco business logistics system, this article proposes the concept of strip tobacco logistics system and defines the scope of the system. Secondly, the paper summarizes that the cigarette logistics modulus effects on safety stock, distribution cost and customer satisfaction via the concept of logistics modulus, the framework of cigarette logistics and distribution systems and the integration concept of tobacco logistics, and analyzes the existence of the best cigarette logistics modulus with multi-objective programming model and optimization theory. Thirdly, this paper is based on the study of the entire chain of cigarette logistics distribution system, tries to identify the influential factors of safety stock, distribution cost and customer satisfaction from the perspective of logistics module, and solves the three goals of system optimization model through quantitative analysis, characteristics of tobacco industry and references. Finally, the relevant data that collected from cigarette distribution center and cigarette retailers is used in safety stock model, distribution cost model and customer satisfaction model, and then obtains the best modulus value which is five with multi-objective programming model of cigarette logistics and distribution systems. The value obtained from the model is same as the set value from policymakers of the Chongqing tobacco company, and this result verifies the correctness of cigarette logistics and distribution systems optimization model in this paper.Although the study of logistics modulus is relatively scarce, it has a very important role in high-efficiency operation of the logistics industry. The innovations of this paper are as follows. This paper combines with the characteristics of strip tobacco logistics distribution, and puts forward the concept cigarette logistics modulus. This paper discusses the logistics system, the concept of supply chain logistics system and characteristics tobacco logistics system, raises the concept of strip tobacco logistics system, and defines the framework of cigarette logistics and distribution systems from inventory, distribution and customer three aspects. The process of optimization analysis in cigarette logistics and distribution systems focuses on strip tobacco logistics modulus, establishes respectively a quantitative model based on three areas of safety stock, distribution costs and customer satisfaction, obtains algorithm design and results by taking advantage of multi-objective programming model, evaluation function, SPSS software and MATLAB software, and the model’s results that best cigarette logistics module passes through the empirical study.The optimization of cigarette logistics and distribution systems is to make the distribution cost drop, safety stocks decrease and customer satisfaction upgrade. The researched method can be practically applied to increase profitability of tobacco industry and satisfaction of customer service, and provides a valuable reference for managers of the tobacco companies to set logistics modulus values.