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How to achieve a win–win scenario between cost and customer satisfaction for cold chain logistics?

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  • Wang, Minxi
  • Wang, Yajie
  • Liu, Wei
  • Ma, Yu
  • Xiang, Longtao
  • Yang, Yunqi
  • Li, Xin

Abstract

This paper aims to study how to achieve a win–win scenario between distribution cost and customer satisfaction; and propose a reasonable scheme for the terminal distribution of cold chain logistics. The paper focuses on the customers’ time requirements and establishes the penalty costs incurred when service time requirements are not met. In addition, this paper combines different aspects, such as considering the refrigeration energy consumption and the damage costs. Meanwhile, because of the different potential impacts of the various costs, different weights are assigned to each cost. Then, a cold chain logistics vehicle routing optimization model considering time windows is constructed. Finally, the Clarke–Wright (CW) algorithm, which is suitable for the model, is selected to solve the problem, and the validity of the model is verified by an example. The results of the calculation example show that although the transportation cost and energy cost of the optimized distribution route increase slightly, the optimized distribution route greatly reduces the total cost. Customer satisfaction and vehicle load rate have also increased significantly. Cost reduction and satisfaction improvement can sometimes be achieved at the same time. Using mathematical methods to plan routes can help companies save costs. And help planners and delivery staff to improve the timeliness of the last-mile delivery. Simplify complex algorithms without having to use professional software. More ordinary employees can also use this method.

Suggested Citation

  • Wang, Minxi & Wang, Yajie & Liu, Wei & Ma, Yu & Xiang, Longtao & Yang, Yunqi & Li, Xin, 2021. "How to achieve a win–win scenario between cost and customer satisfaction for cold chain logistics?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 566(C).
    • Handle: RePEc:eee:phsmap:v:566:y:2021:i:c:s0378437120309353
    DOI: 10.1016/j.physa.2020.125637
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    Cited by:

    1. Han Yan & Min-Ju Song & Hee-Yong Lee, 2021. "A Systematic Review of Factors Affecting Food Loss and Waste and Sustainable Mitigation Strategies: A Logistics Service Providers’ Perspective," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    2. Cui, Huixia & Qiu, Jianlong & Cao, Jinde & Guo, Ming & Chen, Xiangyong & Gorbachev, Sergey, 2023. "Route optimization in township logistics distribution considering customer satisfaction based on adaptive genetic algorithm," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 204(C), pages 28-42.
    3. Hamid R. Sayarshad & Vahid Mahmoodian & Nebojša Bojović, 2021. "Dynamic Inventory Routing and Pricing Problem with a Mixed Fleet of Electric and Conventional Urban Freight Vehicles," Sustainability, MDPI, vol. 13(12), pages 1-16, June.
    4. Benyamin Moghaddasi & Amir Salar Ghafari Majid & Zahra Mohammadnazari & Amir Aghsami & Masoud Rabbani, 2023. "A green routing-location problem in a cold chain logistics network design within the Balanced Score Card pillars in fuzzy environment," Journal of Combinatorial Optimization, Springer, vol. 45(5), pages 1-33, July.
    5. Feng Li & Zhi-Ping Fan & Bing-Bing Cao & Xin Li, 2020. "Logistics Service Mode Selection for Last Mile Delivery: An Analysis Method Considering Customer Utility and Delivery Service Cost," Sustainability, MDPI, vol. 13(1), pages 1-22, December.

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