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

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.