Approach to the designing of a rational distribution network for a retail company

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MAGAZINE №1 (66) February 2015

AUTHOR DYBSKAYA V. V., SVERCHKOV P.A.

CATEGORY Optimization and economic-mathematical modeling Reviews and Analytics Logistics distribution Corporate logistics retailers

ABSTRACT

A problem of the designing of rational distribution network for a retail industry is observed in the article. The principle of rationality of a distribution network is described as a connection between a distribution network design and goals / requirements of a corporate strategy with a breakdown by different formats, sales regions and product categories. Authors proposed five-step approach for the designing of a rational distribution network, including a classification of a retail company, identification of corporate strategy’ requirements for a distribution network, a linkage of these requirements with strategic goals in logistics for separate elements and objects in a distribution network, mathematical formalization of the joint objective function and the system of restrictions for the network modeling and optimization. 

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