Optimization of Logistics Network for Fresh Products Considering Busy Facilities and the Self-Collection Service Level

Purpose/Significance The logistics network for fresh products integrating the optimization of transportation routes, self-collection selection and allocation of customers can improve the comprehensive benefits of logistics system. Design/Methodology The busy facilities measure function is set up to improve the self-collection efficiency. Then the location and routing optimization model of pick-up points is constructed to minimize costs and maximize the efficiency of pick-up points and service level. The self-collection service level function is established to meet customer requirements on high service level. In addition, this paper explores the self-collection location of fresh products and routing optimization model that have the minimum total cost, maximum self-collection efficiency and highest service level. The multi-objective tabu search algorithm based on the “one-stage coding” scheme and novel customer allocation strategy is designed and the feasibility and effectiveness of the model and algorithm are verified by calculation examples. Findings/Conclusions The results show that given the service level and busy facilities of self-collection, the efficiency of self-collection facilities can be improved while satisfying diverse customer requirements. As the total cost, busy facilities and self-collection service level affect each other, deciders should make reasonable decisions based on the actual business operations.