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Chinese Journal of Management Science ›› 2022, Vol. 30 ›› Issue (7): 201-209.doi: 10.16381/j.cnki.issn1003-207x.2019.0555

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Multi-Objective Optimization of Overseas Warehouse Location for Cross-border E-commerce Enterprises

HU Yu-zhen, LI Qian-qian, JIANG Shan   

  1. School of Economics and management, Harbin Engineering University,Harbin 150001, China
  • Received:2019-04-20 Revised:2019-08-12 Online:2022-08-05 Published:2022-08-05
  • Contact: 胡玉真 E-mail:yuzhenhu@hrbeu.edu.cn

Abstract: As a new cross-border logistic mode under the strategic environment of the Belt and Road, overseas warehouses have the characteristics of short transportation time and fast return and exchange.In the context of cross-border e-commerce, a multi-objective optimization model is present for overseas warehouse location,considering the factors of warehouse construction cost, transportation cost, transportation time, tariff and so on.Under the conditions of giving the supply point and demand point,the model figures out a set of overseas warehouse location plan and commodity transportation plan to obtain the optimal value of the three objectives which are listed via their priorities. The first objective is to minimize the maximal warehouse construction cost. The second is to minimize the sum of transportation costs, taxes, and customer time penalty costs incurred during transportation. The last is to minimize the number of overseas warehouses. Afterward, based on the priority of the objectives in the model, a binary search-minimum cost flow algorithm is designed based on the stratified sequencing method to solve the model, and it is proved that the algorithm can achieve the optimal solution with polynomial time. Finally, an example is given to prove the feasibility and practicability of the model and algorithm. The results show that the Binary search-Minimum cost flow algorithm can be used to solve the multi-objective problem to obtain a better location scheme. This provides theoretical basis and decision support for the selection of cross-border e-commerce overseas warehouses.

Key words: overseas warehouse location; multi-objective optimization; stratified sequencing method;binary search; the Belt and Road

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