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Optimization Of The Logistics Network Of The Selected Online Store

Author

Listed:
  • Mykhailo Dobroselskyi

    (University of Žilina, The Faculty of Operation and Economicsof Transport and Communications, Deparment of Communications)

  • Radovan Madleňák

    (University of Žilina, The Faculty of Operation and Economicsof Transport and Communications, Deparment of Communications)

Abstract

The Internet serves as the main infrastructure for global shopping. For this purpose, the construction of an e-commerce logistics network is the main aspect of a successful existence in the virtual environment. This paper analyses the logistics system of a company located in Ukraine. The core business of the company is selling diagnostic equipment for cars through an online store. The structure of the company consists of one warehouse and five branches. The company does not have its own fleet for the transportation of products from warehouse to branches or to end customers and it outsources the services of another logistics company. The main goal of the paper is to optimize the existing logistics system of the product flow between the warehouse, branches and the final buyers of the online store. At the end of the article, after optimizing the warehouse localization, we received a reduction in shipping costs by 23%. Also, an existing and optimized logistics network is compared in terms of speed and cost of transportation between warehouse, affiliates and end users.

Suggested Citation

  • Mykhailo Dobroselskyi & Radovan Madleňák, 2019. "Optimization Of The Logistics Network Of The Selected Online Store," CBU International Conference Proceedings, ISE Research Institute, vol. 7(0), pages 68-74, September.
    • Handle: RePEc:aad:iseicj:v:7:y:2019:i:0:p:68-74
    DOI: 10.12955/cbup.v7.1342
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    More about this item

    Keywords

    online shopping; e-commerce; inventory management; logistics; truck logistics; logistic network design;
    All these keywords.

    JEL classification:

    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General

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