Optimisation of the Two-Tier Distribution System in Omni-Channel Environment

This paper deals with the problem of the design and configuration of a distribution system that supports the delivery of goods to customers using various commercial channels. In this sense, a modelled distribution system, called an omni-channel distribution system, should ensure the delivery of the...

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Bibliographic Details
Main Authors: Piotr Sawicki, Hanna Sawicka
Format: Article
Language:English
Published: MDPI AG 2021-11-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/14/22/7700
Description
Summary:This paper deals with the problem of the design and configuration of a distribution system that supports the delivery of goods to customers using various commercial channels. In this sense, a modelled distribution system, called an omni-channel distribution system, should ensure the delivery of the same products in different ways while guaranteeing its highest efficiency. The authors propose a single-criterion mixed-integer programming model for the configuration of a complex distribution system of goods in an omni-channel environment. A minimized cost function, composed of key logistics elements including transport, warehouse location, and manipulation processes, is the objective function. The model was experimentally verified, and as a result, potential savings of around 5–8% of the omni-channel design distribution system costs versus the multi-channel distribution system costs were identified. In the paper, an extended sensitivity analysis is also performed to show how specific parameters of the model can change the final recommendation.
ISSN:1996-1073