A robust optimization to dynamic supplier decisions and supply allocation problems in the multi-retail industry

Authors

DOI:

https://doi.org/10.15587/1729-4061.2024.305111

Keywords:

distribution, multi-retail, industry, infrastructure, mathematical models

Abstract

The research focuses on multi-retail distribution with a strategic distribution network. Challenges include intense competition, logistical and transportation complexities requiring robust infrastructure like warehouses and efficient supply chain management, as well as operational inefficiencies and distribution costs. To address these issues, a model is applied to make strategic decisions, such as determining the necessary number of facilities to minimize total supply chain network operational costs and infrastructure for retail distribution. The outcome is a model that introduces a novel approach to enhancing supply chain efficiency and effectiveness from production to distribution stages, thereby reducing system costs, including ordering costs and inventory handling. Costs and loss costs resulting from remaining products produced can be minimized by considering networks, multiple suppliers, multiple warehouses, Distribution Centers (DC), multiple retailers, and multiple products, factoring in the distances between facilities in the network. Subsequently, comprehensive testing of inspection, distribution, and retail parameters is conducted, with a focus on specific periods and product types. When applying this model, certain characteristics need to be considered regarding the importance of selecting efficient suppliers of goods, such as procurement, performance improvement, and the number of supply chains and supply chain systems. This research introduces novelty in production methods that can lead to increased customer satisfaction, sales, market share, profit margins, more effective brand advertising, and revenue streams. In this process, the research undergoes a training, testing, and validation process in forming a strategic multi-retail distribution network model, spanning a total of 52 epochs. This process yields accuracy values for training at 90 %, testing at 92 %, and validation at 94 %

Author Biographies

Solly Aryza, Universitas Sumatera Utara

Student Doctoral Program in Computer Science 

Department of Computer Science

Syahril Efendi, Universitas Sumatera Utara

Professor

Department of Computer Science

Poltak Sihombing, Universitas Sumatera Utara

Professor

Department of Computer Science

Sawaluddin, Universitas Sumatera Utara

Doctor of Mathematics

Department of Mathematics

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A robust optimization to dynamic supplier decisions and supply allocation problems in the multi-retail industry

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Published

2024-06-28

How to Cite

Aryza, S., Efendi, S., Sihombing, P., & Sawaluddin. (2024). A robust optimization to dynamic supplier decisions and supply allocation problems in the multi-retail industry. Eastern-European Journal of Enterprise Technologies, 3(3 (129), 67–73. https://doi.org/10.15587/1729-4061.2024.305111

Issue

Vol. 3 No. 3 (129) (2024): Control processes

Section

Control processes

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Copyright (c) 2024 Solly Aryza, Syahril Efendi, Poltak Sihombing, Sawaluddin

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