Optimization of frozen goods distribution logistics network based on k-means algorithm and priority classification

Abstract

Abstract Maintaining the quality and integrity of frozen goods throughout the supply chain necessitates a robust and efficient cold chain logistics network. This research proposes a machine learning-based method for optimizing such networks, resulting in significant cost reduction and resource utilization improvement. The method employs a three-phase approach. First, K-means clustering groups sellers based on their geographical proximity, simplifying the problem and enabling more accurate demand prediction. During the second phase of the proposed method, Gaussian Process Regression models predict future sales volume for each seller cluster, leveraging historical sales data. Finally, the Capuchin Search Algorithm simultaneously optimizes distributor location and resource allocation for each cluster, minimizing both transportation and holding costs. This multi-objective approach achieved a 34.76% reduction in costs and a 15.6% reduction in resource wastage compared to the existing system. This novel method offers a valuable tool for frozen goods distribution networks, with advantages such as considering multiple goals for optimization, focusing on demand prediction, potential for reduced complexity, and focusing on managerial insights over compared methods.

Keywords

• Cold chain logistics
• K-means clustering
• Gaussian process regression
• Capuchin Search Algorithm