Dynamic Uncertainty Study of Multi-Center Location and Route Optimization for Medicine Logistics Company

Zhiyuan Yuan and Jie Gao
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Zhiyuan Yuan: School of Management, Xi’an Jiaotong University, Xi’an 710049, China
Jie Gao: School of Management, Xi’an Jiaotong University, Xi’an 710049, China

Mathematics, 2022, vol. 10, issue 6, 1-15

Abstract: Multi-center location of pharmaceutical logistics is the focus of pharmaceutical logistics research, and the dynamic uncertainty of pharmaceutical logistics multi-center location is a difficult point of research. In order to reduce the risk and cost of multi-enterprise, multi-category, large-volume, high-efficiency, and nationwide centralized medicine distribution, this study explores the best solution for planning medicine delivery for the medicine logistics. In this paper, based on the idea of big data, comprehensive consideration is given to uncertainties in center location, medicine type, medicine chemical characteristics, cost of medicine quality control (refrigeration and monitoring costs), delivery timeliness, and other factors. On this basis, a multi-center location- and route-optimization model for a medicine logistics company under dynamic uncertainty is constructed. The accuracy of the algorithm is improved by hybridizing the fuzzy C-means algorithm, sequential quadratic programming algorithm, and variable neighborhood search algorithm to combine the advantages of each. Finally, the model and the algorithm are verified through multi-enterprise, multi-category, high-volume, high-efficiency, and nationwide centralized medicine distribution cases, and various combinations of the three algorithms and several rival algorithms are compared and analyzed. Compared with rival algorithms, this hybrid algorithm has higher accuracy in solving multi-center location path optimization problem under the dynamic uncertainty in pharmaceutical logistics.

Keywords: uncertainty; medicine distribution; FCM-SQP-VNS hybrid algorithm (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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