The Optimization of the Location of Front Distribution Centre: A Spatio-Temporal Joint Perspective

25 Pages Posted: 9 Apr 2022

See all articles by Linlin Chen

Linlin Chen

Xiamen University

Shuihua Han

Xiamen University

Zhen (Peter) Ye

University College London; The University of Chicago Booth School of Business

Senmao Xia

Coventry University - School of Strategy and Leadership

Abstract

Front Distribution Centre (FDC) is a new terminal warehouse which is closer to customer, and its location selection is crucial for e-commerce and customer time satisfaction. We introduce in this paper a joint distribution function of demand based on time and space and design a staged clustering algorithm to obtain the candidate FDCs. Using an intelligent algorithm based on NSGA-Ⅱ (Non-dominated Sorting Genetic Algorithm II), the location selection problem is formulated as a bi-objective programming model to minimise the total cost and maximise customer time satisfaction. Our results indicate the demand spatio-temporal joint distribution matter and perform better than traditional spatial model. Furthermore, compared with traditional k-means clustering, the solving method based on staged clustering and NSGA-II is more effective and can help reduce total cost by up to 38.84% and improve customer time satisfaction by up to 36.22%.

Keywords: Front distribution centre (FDC), location selection, bi-objective programming, time distribution, spatio-temporal joint distribution

Suggested Citation

Chen, Linlin and Han, Shuihua and Ye, Zhen and Xia, Senmao, The Optimization of the Location of Front Distribution Centre: A Spatio-Temporal Joint Perspective. Available at SSRN: https://ssrn.com/abstract=4079781 or http://dx.doi.org/10.2139/ssrn.4079781

Linlin Chen

Xiamen University ( email )

Xiamen, 361005
China

Shuihua Han

Xiamen University ( email )

Xiamen, 361005
China

Zhen Ye (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

The University of Chicago Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

Senmao Xia

Coventry University - School of Strategy and Leadership ( email )

Priory Street
Coventry, CV1 5FB
United Kingdom

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