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Dynamic Optimization Model and Sensitivity Analysis of Logistics Distribution Center’s Goods Configuration

In: Liss 2014

Author

Listed:
  • Ping Zeng

    (Beijing Jiaotong University)

  • Jiayi Yao

    (Beijing Jiaotong University)

Abstract

With the advent of the information age, e-commerce has been developing rapidly and a large number of large-scale e-commerce shopping platforms have emerged in China. When the location and scale of the logistics distribution centers’ have been identified, there are still some differences existing in the average distribution costs and storage costs of each centers because of their different geographic location and scale. (Cui, China Circ Econ 1(06):15–18, 2003) This article uses the dynamic iterative manner combined with linear programming and takes model storage capacity, distribution costs, customer demand constraints and other factors into account in order to obtain distribution centers’ best goods configuration which can maximize electricity suppliers’ benefits. Finally, this model analyzes the resource who constraints the benefit. That is funding constraints and inventory constraints. By doing so, the electricity supplier can be guided if the logistics distribution center needs additional investment. The innovation of this paper is the application of iterative dynamic linear programming model to distribution centers’ goods configuration problems.

Suggested Citation

  • Ping Zeng & Jiayi Yao, 2015. "Dynamic Optimization Model and Sensitivity Analysis of Logistics Distribution Center’s Goods Configuration," Springer Books, in: Zhenji Zhang & Zuojun Max Shen & Juliang Zhang & Runtong Zhang (ed.), Liss 2014, edition 127, pages 219-224, Springer.
    • Handle: RePEc:spr:sprchp:978-3-662-43871-8_34
    DOI: 10.1007/978-3-662-43871-8_34
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