The Procurement-Inventory-Routing Joint Decision Model for Regional Distribution Center under E-commerce Environment

As an important part of supply chain operation and management, the study of multi-process co-optimisation helps e-commerce enterprises to achieve cost reduction and efficiency. This paper combines the actual operation mode of e-commerce enterprises, the theory of joint procurement problem and inventory routing problem, and establishes an integer planning model with the objective of minimising the sum of procurement cost, inventory cost and routing cost by considering the multi-cycle operation scenarios and the splitting of distribution demand. Simulation experiments and analyses are carried out with the help of 18 kinds of specifications and the optimization software CPLEX, and the experimental results show that: 1) the established model can solve all the cases quickly; 2) the complexity of the studied problem increases sharply with the increase of the problem scale (the number of operation cycles and the number of FDC); 3) the sensitivity of the main parameters of the model (procurement cost, inventory cost per unit of commodity base operation cycle, distance per unit, transport cost per unit, etc.) has been measured. transport cost) were analysed in terms of sensitivity to get the corresponding management insights. The research results can not only expand the existing theory of the joint procurement -inventory- routing optimisation problem, but also provide scientific decision support for the operation and management practice of e-commerce enterprises.

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Published
2025-03-14
DOI
https://doi.org/10.1145/3736426.3736444
Primary Topic
Supply Chain Resilience and Risk Management
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article
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The Procurement-Inventory-Routing Joint Decision Model for Regional Distribution Center under E-commerce Environment

Zhuangzhuang Wang, Dongyang Xu, Lijuan Wang, Jingyi Zhu
Supply Chain Resilience and Risk Management
article

The Procurement-Inventory-Routing Joint Decision Model for Regional Distribution Center under E-commerce Environment

Zhuangzhuang Wang, Dongyang Xu, Lijuan Wang, Jingyi Zhu
article en

Abstract

As an important part of supply chain operation and management, the study of multi-process co-optimisation helps e-commerce enterprises to achieve cost reduction and efficiency. This paper combines the actual operation mode of e-commerce enterprises, the theory of joint procurement problem and inventory routing problem, and establishes an integer planning model with the objective of minimising the sum of procurement cost, inventory cost and routing cost by considering the multi-cycle operation scenarios and the splitting of distribution demand. Simulation experiments and analyses are carried out with the help of 18 kinds of specifications and the optimization software CPLEX, and the experimental results show that: 1) the established model can solve all the cases quickly; 2) the complexity of the studied problem increases sharply with the increase of the problem scale (the number of operation cycles and the number of FDC); 3) the sensitivity of the main parameters of the model (procurement cost, inventory cost per unit of commodity base operation cycle, distance per unit, transport cost per unit, etc.) has been measured. transport cost) were analysed in terms of sensitivity to get the corresponding management insights. The research results can not only expand the existing theory of the joint procurement -inventory- routing optimisation problem, but also provide scientific decision support for the operation and management practice of e-commerce enterprises.

Henan University (CN), Chongqing Jiaotong University (CN)
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Supply Chain Resilience and Risk Management
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The Procurement-Inventory-Routing Joint Decision Model for Regional Distribution Center under E-commerce Environment — Zhuangzhuang Wang, Dongyang Xu, et al. · (2025) | TGRS Research Map | TGRS