City Logistics Network Optimization Models For Large Chain Retailers Under Online–Offline Channel Integration

From 2015 to 2016,domestic large-scale chain retail enterprises suffered unprecedented customs tide,the rapid development of e-commerce and economic downturn caused a huge impact on the traditional retail industry.The expansion of the extensive expansion of retail industry over the past 10 years,has been fully exposed the drawbacks.The large chain retail enterprises O2 O transformation has become an important way to survive.The city distribution logistics network is very important to the retail enterprises O2 O transformation,chose the appropriate logistics and distribution model,design a reasonable urban distribution logistics network,is conducive to retail enterprises to reduce logistics costs,improve enterprise distribution efficiency,improve service quality.This article studies joint location-assignment problems for designing an Urban Logistics Network(ULN)with multiple intermediate depots(IDs)and terminals of ULN.Mainly discusses the self-distribution,third-party logistics two distribution models.The first model studys the self-distribution retailer,presents a large-scale static and deterministic integer programming model solving a joint location-assignment problem of large chain retailers.To solve this model,we put forward a more efficient hybrid algorithm integrated with Genetic algorithm and Tabu search algorithm based on heuristic searching criteria.Our methodology is illustrated with the Urban Logistics Network from a leading Chinese retailer(Suning)in Chongqing.Numerical analysis suggests that optimal solutions can reduce the total network cost between 2.92%~14.36% by comparison with the current ULN.Delivery costs of “Last Mile” account for total urban logistics network costs more than 60%.Vehicle type is a deterministic factor to total urban logistics network costs.This paper also studies the effects of changing parameter values on the optimal solutions and to point out some management implications.The second model studys retail with third-party logistics,to solve the second model,we put forward an improved Lagrangian relaxation algorithm.Our methodology is illustrated with the Urban Logistics Network under O2 O from a leading clothing and footwear chain retailer(Daphne)in Chongqing.Numerical analysis indicates that the decrease of offline and the increased ratio of short distance distribution will lead to increasing total costs under the current structure of the stores.According to the above research results,chain retail enterprises O2 O practice should choose the appropriate logistics and distribution model,a reasonable logistics network design can significantly reduce the logistics costs,improve service quality.In addition,retail format adjustment and store closing can significantly reduce the cost.