A mathematical model for optimum single-commodity distribution in the network of chain stores: a case study of food industry

Abstract

Distribution refers to the steps taken to move and store a product from the suppliers to a customers in the supply chain and is a key driver of the overall profitability of a firm and overall supply chain. In this paper, a problem regarding managing of the move and store of goods are articulated and a mathematical model is presented to solve the model. The objective function is the total costs of distribution network, including transportation, storage rental, general warehousing, goods damages due to the transportation and storage, procurement, packing, and finally loading and unloading costs. The cost components described are defined based on the assumptions for a real distribution network of a chain stores firm. The aim of developing such a model is to find the optimum pattern to move and store goods based on the minimum cost of the distribution network.

Keywords

• Logistics
• Distribution network
• Move and store
• Chain stores
• Single-commodity
• Mathematical model