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Agenda
Background
Data Description
Motivation of Study
Models and Constraints
Other Consideration
Background
BBG Chain Supermarket
Chinese local supermarket
Operate more than 300 supermarkets over 5 provinces
Intergrate self-supporting food processing and logistics
Background
Fresh goods processing logistics distribution Center
Changsha City
A top tier city with 20
BBG supermarket
Xiangtan City
A low tier city with a BBG’s fresh goods processing logistics distribution center which serves the 20 BBG supermarket
Data Description
NO. Supermarket
Location Distance
(Km, Round Trip) Daily Demand
(tons) NO.
Supermarket
Location Distance
(Km, Round Trip)
Daily Demand
(tons)
1 HonXin 71 3 11 YuTan 140 2.4
2 DonTon 100 3.2 12 XiLe 75 4.8
3 ZiYun 100 5.6 13 Don 110 3.8
4 LinXue 85 6 14 WonFu 110 3.2
5 JinGui 80 3.8 15 XinStar 120 3.8
6 NanGuo 100 3.2 16 KaiYun 120 3.2
7 JinXin 120 2 17 YonAn 143 2.4
8 West 120 1.8 18 LiHua 221 3.8
9 WonJia 110 2.8 19 ShiJi 225 2.9
10 WonCh 140 1.9 20 LiuYon 135 1.8
Distance to DC and Daily Demand of 20 Supermakets
Source: Apple Maps, BBG company
Tonnage grading
（ton） Cost per kilometer (yuan) Full load
（ton） Fixed cost
（yuan/day）
2 2.63 2 30
4 2.80 4 50
6 4.01 8 80
Shipment vehicle cost
Source: BBG company
Data Description
*small size
*medium size
*large size
Distribution Mode
Distrib-ution Center
Direct Shipping (Current)
Each supermarket must be delivered in one time
Each car could serve up to two supermarkets
Data Description
Motivation of study
On the premise of completing the total logistics distribution task:
Minimize total cost of delivery
Balance drivers’ workload
Trade off the cost and workload
Optimize logistics distribution network
Model 1
Input parameters Description Value
j The number of stores 20
The distance from distribution center to store j Previous table
The demand of store j Previous table
There are 20 stores in downtown Changsha..
Input parameters Description Value
k The kinds of vehicles 1-small 2-medium 3-large
Cost per kilometer for ith kind of vehicles 2.63 (k=1) 2.80 (k=2) 4.01 (k=3)
Fixed cost for ith kind of vehicles 30 (k=1) 50 (k=2) 80 (k=3)
With three different types of cars: small size vehicles, medium vehicles and large size vehicles.
Model 1
Decision variables Description
x The number of small size vehicles
y The number of medium size vehicles
z The number of large size vehicles
1 if the oth small size vehicle goes to store j,
0 otherwise
1 if the pth medium size vehicle goes to store j,
0 otherwise
1 if the qth large size vehicle goes to store j,
0 otherwise
Model 1
Fixed costs
Variable costs
2
binary
s.t.
Model 1
Each supermarket must be delivered in one time.
Decision variables Description
1 if the oth small size vehicle ‘goes to store j, 0 otherwise
1 if the pth medium size vehicle goes to store j, 0 otherwise
1 if the qth large size vehicle goes to store j, 0 otherwise
Model 1
variables Description
1 if the oth small size vehicle goes to store j, 0 otherwise
1 if the pth medium size vehicle goes to store j, 0 otherwise
1 if the qth large size vehicle goes to store j, 0 otherwise
The demand of store j
2
Model 1
Each car could serve up to two supermarkets
variables Description
1 if the oth small size vehicle goes to store j, 0 otherwise
1 if the pth medium size vehicle goes to store j, 0 otherwise
1 if the qth large size vehicle goes to store j, 0 otherwise
The demand of store j
Model 1
Fixed costs
Variable costs
Input parameters Description
Fixed cost for ith kind of vehicles
The distance from distribution center to store j
Model 1
Model 2
How to arrange the line, so that the travel distance of each driver is basically balanced.
Input Parameters Description
n The number of vehicles
m The number of stores
The distance from distribution center to store j
Decision variables Description
Hij 1 if the vehicle ‘i’ go to the store j,
0 otherwise
Model 2
Total Distance Vehicle ‘i’ travels=
Average Distance = (/n
Z= =
s.t.
n 20
binary
Indicates that each store can only be delivered by one car at a time.
Indicates that each car can only run at most two times
Model 2
Other Consideration
Trade off between minimizing the cost and balancing the drivers’ workload.
Is it possible?
Other Consideration
If BBG uses carpool delivery mode, what will our model be?
Distrib-ution Center
Car-pool Shipping (Ideal)
步步配送
中心
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B
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步步配送
中心
A
B
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步步配送
中心
A
B
D
C
步步配送
中心
A
B
D
C
步步配送
中心
A
B
D
C
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