Abstract
The location of joint distribution center (JDC) is of great importance in urban freight system. This work aims to minimize the total cost, including the fixed cost, the transportation cost, and the penalty cost for the missed deliveries, considering the joint distribution willingness (JDW) of restaurant and the coverage radius of JDC. The integer programming model is formulated to select the optimal location of JDC and opens no more than k-JDCs. To solve the problem, an improved K-means (I-K-means) algorithm combining local search with penalty is proposed. The delivery problems obtained by freight survey from 114 restaurants in Beijing, China are taken as a case study. The formulation in this paper can reduce the cost of deliveries in restaurant industry, decrease the number of freight vehicles on road, and promote the joint distribution mode in urban freight system.
Highlights
Owing to the development of online food orders, the demand for suppliers in the restaurant industry is growing sharply [1]
The location of joint distribution center (JDC) significantly affects the efficiency of logistic system and should balance the interests of participators involved in the joint distribution alliance [2]
This paper aims to fill the gap and gain insight into joint distribution willingness (JDW) of restaurants to determine a cost-effective location of JDC
Summary
Owing to the development of online food orders, the demand for suppliers in the restaurant industry is growing sharply [1]. The great amount of freight demand put high requirements on the distribution efficiency. Most suppliers distribute food materials directly to restaurants. The direct distribution requires a large number of vehicles, which are partially loaded and occupy the road resource. The joint distribution can significantly save the transportation cost, increase the load utilization of vehicles, and reduce number of establishments. The concept of joint distribution organized for the restaurant industry is illustrated in Fig. 1 (b). The location of JDC significantly affects the efficiency of logistic system and should balance the interests of participators involved in the joint distribution alliance [2]
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