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Optimization of Logistics and Distribution of the Supply Chain, Taking into Account Transport Costs, Inventory and Customer Demand

Author

Listed:
  • Lukasz Golabek
  • Jozef Stokłosa
  • Jacek Dziwulski
  • Joanna Wyrwisz

Abstract

Purpose: The aim of the article is to develop an algorithm to optimize logistics and distribution of the supply chain, taking into account transport costs, inventory and customer demand. Design/Methodology/Approach: To solve the problem, the class of optimization problems and the traveling salesman problem were used. The boundary conditions and the objective function were determined. The optimization criterion was to minimize the total transport costs, kilometers traveled and the time needed to complete the task. Findings: As a result of the analyzes and calculations performed, the optimization task was performed. With the help of the prepared software, a map of goods delivery points was determined, the total route and the route with individual points marked, and various solution methods were tested. Practical Implications: The model presented in the article can be used in a supply chain application to optimize routes, costs and delivery time. Originality/Value: A novelty is the preparation of algorithms and universal software using the R language, which was used in the application of an intelligent IT system in a distributed model, controlling the supply chain, enabling personalization and identification of products in real time.

Suggested Citation

  • Lukasz Golabek & Jozef Stokłosa & Jacek Dziwulski & Joanna Wyrwisz, 2021. "Optimization of Logistics and Distribution of the Supply Chain, Taking into Account Transport Costs, Inventory and Customer Demand," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 545-556.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:special2:p:545-556
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    References listed on IDEAS

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    1. Dasci, Abdullah & Verter, Vedat, 2001. "A continuous model for production-distribution system design," European Journal of Operational Research, Elsevier, vol. 129(2), pages 287-298, March.
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    More about this item

    Keywords

    Supply chain; travelling salesman problem; optimization; objective function.;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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