Sustainable distribution logistics of retail chains

Abstract

Distribution logistics of retail chains is very specific, because the network of retail chains is usually very extensive and there are many constraints for distribution of goods, for example time windows of central warehouses (depots) and stores for loading and unloading, more deliveries within the same day to stores or distribution of objects of reverse logistics from stores to central warehouses. There are many flows between stores and central warehouses, for example product flows, information flows, financial flows, reverse flows etc. Sustainable distribution logistics should respect three pillars of sustainability, there are: economic, social and environmental pillars. Sustainable distribution logistics of retail chains should investigate the possibilities of streamlining with consideration to the pillars of sustainability. The article will focus on the distribution planning tools which are being used for planning of distribution logistics for retail chains. There are some algorithms of graph theory, for example: Vehicle routing problem with pickup and delivery with time windows. The aim of the article will be to find an algorithm for this type of exercise which will respect all defined constraints and pillars of sustainability for distribution logistics of retail chains. The algorithm will be simulated on a specific network of retail chain as a case study.