How to achieve a win–win scenario between cost and customer satisfaction for cold chain logistics?

Minxi Wang, Yajie Wang, Wei Liu, Yu Ma, Longtao Xiang, Yunqi Yang and Xin Li

Physica A: Statistical Mechanics and its Applications, 2021, vol. 566, issue C

Abstract: This paper aims to study how to achieve a win–win scenario between distribution cost and customer satisfaction; and propose a reasonable scheme for the terminal distribution of cold chain logistics. The paper focuses on the customers’ time requirements and establishes the penalty costs incurred when service time requirements are not met. In addition, this paper combines different aspects, such as considering the refrigeration energy consumption and the damage costs. Meanwhile, because of the different potential impacts of the various costs, different weights are assigned to each cost. Then, a cold chain logistics vehicle routing optimization model considering time windows is constructed. Finally, the Clarke–Wright (CW) algorithm, which is suitable for the model, is selected to solve the problem, and the validity of the model is verified by an example. The results of the calculation example show that although the transportation cost and energy cost of the optimized distribution route increase slightly, the optimized distribution route greatly reduces the total cost. Customer satisfaction and vehicle load rate have also increased significantly. Cost reduction and satisfaction improvement can sometimes be achieved at the same time. Using mathematical methods to plan routes can help companies save costs. And help planners and delivery staff to improve the timeliness of the last-mile delivery. Simplify complex algorithms without having to use professional software. More ordinary employees can also use this method.

Keywords: Cold chain logistics; Vehicle routing problem; Time window; CW algorithm; Customer satisfaction (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:566:y:2021:i:c:s0378437120309353

DOI: 10.1016/j.physa.2020.125637

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