Optimization Design of Automotive Parts Logistics Network Based on Facility Location-Routing

To address inefficiencies in Company X’s automotive parts logistics network—caused by the rapid expansion and geographic dispersion of its suppliers (371 in East China, with uneven spatial distribution: concentrated in the Yangtze River Delta, scattered in northern Jiangsu/southern Zhejiang, and significant supply volume gaps) and the inherent limitations of the existing two-stage (supplier-central distribution center) structure—this study proposes a three-stage optimization framework (supplier-distribution center- central distribution center) by adding distribution centers to reduce costs and improve efficiency. Focusing on the East China network, the methodology is systematic: Firstly, K-means clustering was applied to analyze 371 suppliers, with 10 iterations identifying 6 candidate distribution centers (1 excluded for proximity to the central distribution center); Secondly, a linear programming model integrating fixed (distribution center), transportation, and transshipment costs is built to minimize total logistics expenses; Thirdly, a genetic algorithm optimizes milk-run routes to cut trip frequency. Empirical results show significant improvements: the optimized network selects Wuxi Huishan K1 (Fengwu Intelligent Manufacturing Park) and Shanghai Anting J1 (central distribution center) as collaborative nodes, restricts delivery radius to ≤300 km (down from over 500 km), saves 25,481 yuan in annual transportation costs, eases the original hub’s load, and enhances vehicle scheduling efficiency. This study contributes threefold: (1) a “clustering-selection + model optimization” framework for supplier dispersion; (2) a cost-driven location model validated via sensitivity analysis of fixed/transshipment/transportation costs; (3) practical verification via Company X’s case, providing references for similar automotive parts enterprises.

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Publication Details

Journal
World Journal of Management Science and Technology
Published
2025-10-16
DOI
https://doi.org/10.57237/j.wjmst.2025.01.002
Primary Topic
Product Development and Customization
Type
article
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article

Optimization Design of Automotive Parts Logistics Network Based on Facility Location-Routing

Chen Zhou, Meng Lan
World Journal of Management Science and Technology
Product Development and Customization
article

Optimization Design of Automotive Parts Logistics Network Based on Facility Location-Routing

Chen Zhou, Meng Lan
article en

Abstract

To address inefficiencies in Company X’s automotive parts logistics network—caused by the rapid expansion and geographic dispersion of its suppliers (371 in East China, with uneven spatial distribution: concentrated in the Yangtze River Delta, scattered in northern Jiangsu/southern Zhejiang, and significant supply volume gaps) and the inherent limitations of the existing two-stage (supplier-central distribution center) structure—this study proposes a three-stage optimization framework (supplier-distribution center- central distribution center) by adding distribution centers to reduce costs and improve efficiency. Focusing on the East China network, the methodology is systematic: Firstly, K-means clustering was applied to analyze 371 suppliers, with 10 iterations identifying 6 candidate distribution centers (1 excluded for proximity to the central distribution center); Secondly, a linear programming model integrating fixed (distribution center), transportation, and transshipment costs is built to minimize total logistics expenses; Thirdly, a genetic algorithm optimizes milk-run routes to cut trip frequency. Empirical results show significant improvements: the optimized network selects Wuxi Huishan K1 (Fengwu Intelligent Manufacturing Park) and Shanghai Anting J1 (central distribution center) as collaborative nodes, restricts delivery radius to ≤300 km (down from over 500 km), saves 25,481 yuan in annual transportation costs, eases the original hub’s load, and enhances vehicle scheduling efficiency. This study contributes threefold: (1) a “clustering-selection + model optimization” framework for supplier dispersion; (2) a cost-driven location model validated via sensitivity analysis of fixed/transshipment/transportation costs; (3) practical verification via Company X’s case, providing references for similar automotive parts enterprises.

World Journal of Management Science and TechnologyVol. 4(1)
Shanghai University (CN)
Openalex Percentile: Top 61%
Product Development and Customization
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