Abstract
More and more logistics service providers turn up and make it is difficult to choose correct, economy and efficient ones for us. In order to achieve customer segmentation properly, we proposed an improved FCM algorithm by modifying distance function of categorical data and that of mixed data in this paper, and proved its theoretical correctness. We use clustering to reduce the range of logistics service providers and simplify the complexity of practice. Finally, we apply the proposed algorithm into logistics service provider segmentation, and its results show that the improved FCM algorithm is efficient and correct.
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