Omni-Channel Product Distribution Network Design by Using the Improved Particle Swarm Optimization Algorithm

Abstract

Distribution network under Omni-Channel integration contains many levels. There are one or more dealers at each level which forms a many-to-many distribution network. Consumers purchase a wide variety of products and their demands are uncertain, which constitutes a complex demand network and increases the complexity of the supply chain network. This paper focuses on the integrated optimization of supply chain distribution network and demand network and constructs the joint randomization planning model of location and routing. The goal is to minimize the total costs of the supply chain network under uncertain customer demands. Based on the traditional particle swarm optimization (PSO), this study introduces the collaborative idea to reduce the coding dimension, improves the boundary processing strategy, and adopts the mutation operator to expand the search space. A case study of distribution under Omni-Channel integration in a large enterprise was done. The validity of the model and the effectiveness of the proposed method were verified by numerical experiments.