Model for Building a Distribution Network Based on the Multivariate Analysis of the Industrial and Logistical Potential of Regions

Alexander Kirillov () and Vladimir Tselin ()
Additional contact information
Alexander Kirillov: Samara National Research University
Vladimir Tselin: Samara State Aerospace University (SSAU).

Economy of region, 2015, vol. 1, issue 4, 336 - 345

Abstract: The international integration of the Russian economy is connected to the need of the realization of the competitive advantages of the geopolitical position of Russia, the industrial potential of regions, the logistic infrastructure of transport corridors. This article discusses the design model of the supply chain (distribution network) based on the multivariate analysis and the methodology of the substantiation of its configuration based on the cost factors and the level of the logistics infrastructure development. For solving the problem of placing one or more logistics centers in the service area, a two-stage algorithm is used. At the first stage, the decisions on the reasonability of the choice of one or another version of the development are made with the use of the “Make or Buy†standard model. The criterion of decision making is the guaranteed overcoming of the threshold of “indifference†taking into account the statistical characteristics of costs for options of “buy†and “make†depending on the volume of consumption of goods or services. At the second stage, the Ardalan’s heuristic method is used for the evaluation of the choice of placing one or more logistics centers in the service area. The model parameters are based on the assessment of the development prospects of the region and its investment potential (existence and composition of employment, production, natural resources, financial and consumer opportunities, institutional, innovation, infrastructure capacity). Furthermore, such criteria as a regional financial appeal, professionally trained specialists, the competitive advantages of the promoted company and others are analyzed. An additional criterion is the development of the priority matrix, which considers such factors as difficulties of customs registration and certification, a level of regional transport infrastructure development, political risks and others. Fixing of regional consumers to this or that distribution center can be proved by the solution of open type transport problem. The result of the research is the development of optimal variants for placement of distribution centers based on the multivariate analysis. This model can be used in designing networks to promote products in the territories and regions whose accelerated socio-economic development is supposed.

Keywords: model multivariate analysis; logistics; distribution network; logistics system; logistics center; logistics infrastructure; the industrial potential of regions; international transport corridor; Ardalan’s method; gravity model (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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