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20 views12 pages

Research Paper

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mittalishan150
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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Hindawi

BSC. HONS MATHEMATICS


Mathematical Problems in Engineering

SEMESTER - 5
Volume 2022, Article ID 5784053, 12 pages
[Link]

LINEAR PROGRAMMING PROBLEMS

Research Paper
Breaking Down the Cost of Road Logistics Transportation
Assessment of Management Using the Best Option of
Programming in Linear Form
ISHAN MITTAL : 2022MTS1008
SAGARShu
SACHDEVA
Liu : 2022MTS1012

Department of Economics and Management, Chongqing Industry Polytechnic College, Chongqing 401120, China

Correspondence should be addressed to Shu Liu; liushu@[Link]

Received 12 May 2022; Accepted 17 June 2022; Published 14 July 2022

Academic Editor: Xiantao Jiang

Copyright © 2022 Shu Liu. This is an open access article distributed under the Creative Commons Attribution License, which
Abstract
permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Due to the rapid development of the logistics industry, the business volume of the road transportation industry is also growing
rapidly and its transportation costs are also increasing. Therefore, it is particularly important to control the transportation cost.
This paper aims to evaluate and analyze the cost management of road logistics transportation based on the optimal solution of
linear programming. This paper introduces the basic concept of highway logistics in general and analyzes its components and
characteristics. Road logistics transportation has the characteristics of fast speed, low investment, strong flexibility, and easy to
adapt to local conditions and does not require much infrastructure. We then analyzed the general linear programming model,
made a brief introduction to its mathematical model, and proposed the construction of the optimization model to explore the
transportation model of production and sales balance. Finally, taking W logistics company as a case to analyze and discuss, the
influence of the transportation route in transit on the transportation cost is studied. And its structure and the corresponding
transportation cost of logistics enterprises are analyzed in detail. The experimental results of this paper show that by comparing
the calculation results of the road segment method and the linear programming model, the total freight calculated by the segment
method is 5610 rupees, while the total freight calculated by the linear programming method is 5490 rupees. Comparing the piece
methods, it can be found that the linear programming method is more economical in transportation cost than the piecewise
method. Therefore, when logistics companies optimize road transportation costs, it is more feasible and effective to use linear
programming methods.

1. Introduction deal with unexpected accidents that occur during trans-


portation. This situation results in an extremely poor
The role of modern logistics in regional economic de- experience for the platform to customers. At the same
velopment is growing, and many places have included time, most logistics companies do not realize the rea-
modern logistics in their development plans. As an im- sonable distribution of different transportation routes
portant part of modern logistics, road logistics is becoming during the transportation process and control the trans-
increasingly important. At present, although most road portation cost to a minimum. The general logistics com-
logistics and transportation companies have their own pany will arrange the company’s vehicles for
information platforms, the degree of informatization is transportation after receiving the order. After the vehicles
generally not high, and they are limited to the management are allocated, the remaining orders will be outsourced.
of the manifests submitted by customers. There is a certain They never thought about shipping costs or how to choose
degree of blindness in the daily logistics business man- a better shipping method. How to carry out reasonable
agement within the enterprise, which cannot provide distribution on different roads to meet different trans-
decision-making information for logistics managers to portation needs is a problem that logistics companies need
formulate logistics transportation plans and cannot timely to solve urgently.
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2 Mathematical Problems in Engineering

Use the method of linear programming to model and forms [8]. Tanveer M proposed a new linear programming
analyze the logistics and transportation process, and carry formulation for dual support vector regression [9]. Pra-
out quantitative statistical analysis on it. 'e bottleneck manik S proposed a new concept of optimization problem
restricting the transportation cost is found, which provides under uncertainty and indeterminacy. It is an extension of
the basis for the logistics management of the enterprise. 'e fuzzy and intuitionistic fuzzy optimization, where the degree
new ideas and methods of transportation cost optimization of uncertainty and falsity (rejection) of the objective and
proposed in this paper can provide useful reference for the constraints are considered simultaneously with the degree of
management practice of current logistics enterprises and can truth membership (satisfaction/acceptance) [10]. However,
promote the management and operation of enterprises as a these scholars did not evaluate and analyze the cost man-
whole. 'e purpose of this paper is to evaluate and analyze agement of highway logistics and transportation based on
the cost management of road logistics and transportation the optimal solution of linear programming, but only dis-
based on the optimal solution of linear programming, in cussed its significance unilaterally.
order to make a certain contribution to the management of 'e fixed assets of logistics enterprises are mainly the
road transportation cost. investment in transportation equipment, which is very huge,
According to the research progress in foreign countries, and the operating cost during the operation period is also
different researchers have carried out corresponding co- very high. To this end, enterprises should reasonably plan
operative research in road logistics. Wasilewski J proposed transportation costs, optimize transportation routes, and
the issue of actual hazards to products (edible or not) and increase the utilization rate of transportation vehicles
animals due to border controls in international road without increasing transportation prices and reducing the
transport. 'e border control system used in the Polish part quality of services provided to customers. 'erefore, the
of the eastern border of the EU has been selected, and some transportation cost is minimized and the operating profit of
data have been analyzed. 'ese data concern the number of the enterprise is improved. By comparing the cost man-
inspections and consignments refused due to epidemio- agement of road logistics transportation in W logistics
logical risks [1]. Choudhari S conceptualized the con- company, this paper finds that the total freight obtained by
sumption of raw materials in a road project as a logistics the road segment division method is 5610 rupees, while the
network allocation problem. A linear programming (LP) transportation cost obtained by using the linear program-
formulation was constructed by integrating the three phases ming method is 5490 rupees. It can be seen that, in terms of
of material transportation with appropriate decision vari- total transportation volume, the linear programming
ables [2]. 'e aim of Bucsky P is to show the current state of method saves 120 rupees in transportation cost compared
development of autonomous driving in cargo transportation with the segmented method. 'e innovation of this paper is
and to analyze what possible future directions are feasible. reflected in the following: (1) the basic concept of highway
'e level of autonomous driving is very different in different logistics is introduced, and its constituent factors and
modes of transport, and most likely, the technology will characteristics are analyzed. (2) 'e general linear pro-
favor road transport over other less environmentally gramming model is analyzed, and its mathematical model is
harmful modes of transport [3]. Lakehal A’s Bayesian ap- introduced. (3) Finally, the W logistics company is taken as
proach covers all the steps needed to implement a decision an example to analyze and study, and the influence of the
support solution for risk management and control, from transportation route in the in-transit transportation on the
identifying risks and preparing interventions to operating in transportation cost is discussed.
a crisis. 'e ultimate goal of road risk control using the
impact map method is to optimize the logistics function [4]. 2. Method of Road Logistics Transportation
Sathish D aims to explore these changes from road to rail
transport and to illustrate the impact on logistics providers
Based on Linear Programming
who rely only on road [5]. Boiko I V reveals the special Although various factors have a certain impact on shipping
logistical characteristics of silk as the initial chain of ancient costs, each factor must be taken into account when for-
trade and the distinctive features of the mode of transport mulating freight rates. Generally speaking, transportation
and freight [6]. However, these scholars’ research on road cost is mainly affected by transportation volume, trans-
logistics transportation cost lacks technical justification. portation distance, cargo density, space utilization, trans-
After the study, it was found that the research of road lo- portation difficulty, vulnerability, and market-related
gistics transportation cost management based on the opti- factors. 'e purpose of this paper is to evaluate and analyze
mal solution of linear programming has certain reliability. the cost management of road logistics transportation based
For this reason, one has reviewed the relevant literature on on the optimal solution of linear programming.
linear programming.
Linear programming is now intensively studied by
scholars. Franco J F proposed a new mixed integer linear 2.1. Road Logistics. Road logistics transportation has the
programming model for solving the electric vehicle charging characteristics of fast speed, low investment, strong flexi-
coordination (EVCC) problem in an unbalanced distribu- bility, and easy to adapt to local conditions, and does not
tion system (EDS) [7]. Liu Y proposed a geometric external require much infrastructure. 'erefore, transportation can
climbing method based on inclusive normal cones for be linked to other modes of transportation [11]. Figure 1
solving general linear programming problems of typical shows a planning diagram of logistics operation information
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Mathematical Problems in Engineering 3

sender
consignee
city delivery

warehouse
city delivery
sender

sender trunk transport consignee


Figure 1: Logistics operation information management planning.

management. Among them, logistics transportation tech- Road logistics has strong adaptability and is easy to
nology mainly includes transportation facilities and trans- connect with other logistics and transportation methods.
portation operations. 'e former belongs to the hard Due to its mobility and flexibility, it can be transported in
technology of transportation, and the latter belongs to the various situations, combined with rail, water, air, and other
soft technology of transportation. transportation methods. 'is makes land logistics a key link
In general, road logistics has the following advantages: in an integrated transportation system and an efficient
strong mobility and easy to carry. 'e density of the road means of distribution [14]. Figure 2 shows the integrated
network is high, and the distribution range is large. 'e transportation system.
counties, districts, townships, and villages and towns have Although road logistics has many advantages, compared
basically built roads. 'e density of the road network in the with other modes of transportation, there are still certain
urban area is relatively large, so the accessibility of road shortcomings, which are mainly reflected in the following
traffic is the strongest. Road logistics has strong mobility and aspects: not suitable for long-distance and large-scale
can be started, loaded, unloaded, and dispatched at any time, transportation. Land logistics is generally only suitable for
and there are few links between various transportation links. short-distance transportation, and the unit freight for long-
In addition, road transportation is suitable for the trans- distance transportation is relatively high. 'e economic
portation of emergency and small quantities of goods, and radius of road logistics usually does not exceed 200
plays a pivotal role in rescue and military transportation kilometers.
[12]. Driven by the economic interests of the region, local
Realize “door-to-door” direct delivery. 'ese vehicles are management has become the embodiment of local interests,
small and can be used in fields, on city streets, in residential contributing to local protectionism. 'e current market
houses, in factories, and in front of government offices. In barriers between a considerable number of provinces and
this way, the goods can be transported directly from the cities make the growth of networked logistics service
sender’s warehouse gate to the consignee’s warehouse. 'is companies quite difficult.
is something that other means of transportation such as Accident rates are high. According to relevant statistics,
trains, ships, and planes cannot do. the incidence of road traffic accidents is about 15 times that
Short- and medium-distance transportation is fast and of railways and 178 times that of water traffic.
low cost. Because land logistics can achieve “door-to-door” Due to the low vehicle carrying capacity, the road lo-
direct access, and the travel time is short, there is no need to gistics capacity is reduced. In the process of transportation,
reverse the car mid-way, so the characteristic of short- and the vibration of the car will be very large, and it is easy to
medium-distance transportation is that the transportation damage the goods. Vehicle energy consumption is high,
speed is faster. Fast delivery can not only increase time value, transportation cost is high, and railway transportation cost is
but also speed up capital turnover, increase the time value of high [15]. 'e importance of the transportation industry has
goods, and ensure the quality of goods. 'is is especially increased rapidly with the continuous development of our
important for fresh goods, valuables, high-end goods, and economy. 'e development and changes of both passenger
especially those that need to be shipped urgently [13]. transportation and cargo transportation have become an
'e capital turnover of road logistics is fast, and the important part of the development of the national economy.
initial investment is low. Compared with railway logistics, Among them, road transportation has become the top
road logistics does not need to purchase other expensive priority of the transportation industry.
equipment, install signal equipment, and lay tracks. Due to
the low purchase cost of automobiles, the initial capital
recovery period is short, and it is easy to expand repro- 2.2. General Model of Linear Programming. Linear pro-
duction in a short period of time to ensure that production gramming is a quantitative method often used by logistics
and living needs can be met in a timely manner. companies to develop transportation plans. Under the
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4 Mathematical Problems in Engineering

Disk Array
workstation

Traffic Incident
video Detection web
VPN command hall
server Server server

Switches Internet
command hall
firewall
Backbone switch

Network management server

Remote query Mobile query


terminal terminal
Figure 2: Integrated transportation system.

condition of satisfying certain constraints and objectives, max(or min)c � s1 a1 + s2 a2 + · · · + sp ap ,


how to make the whole system to be optimal, so as to
achieve the least investment, is an important subject in ⎪
⎧ i11 a1 + i12 a2 + · · · i1p ap ≤ (or �, ≥ )j1


linear programming. In general programming, using linear ⎪


⎪ i21 a1 + i22 a2 + · · · i2p ap ≤ (or �, ≥ )j2
programming to solve problems is to seek the optimal or ⎪
⎨ (1)
optimal solution under the constraints of resources and s.t.⎪ · · · · · ·


market demands. 'e biggest advantage of linear pro- ⎪
⎪ iq1 a1 + iq2 a2 + · · · iqp ap ≤ (or �, ≥ )jq


gramming is that it can solve many types of problems. In ⎪

a1 , a2 , . . . , ap ≥ 0
the overall planning, the linear programming method can
be used to realize the optimization of the actual production Here, sp , iqp represents the coefficient variable and ap
capacity, so as to achieve the expected demand. In addition, represents the decision variable.
there are various algorithms such as nonlinear program- 'e short form of the above model is
ming method and comprehensive hybrid method, all of
p
which are designed for the constraints in road trans-
max(or min)c � 􏽘 im am .
portation planning. At present, the design unit generally m�1
adopts the road section division method. Although this p
method is simple and intuitive, there are often some dif- ⎪
⎧ (2)

⎨ 􏽘 inm am ≤ (or �, ≥ )jn (n � 1, 2, . . . , q)
ficult problems to solve, which lead to some problems in s.t.⎪ m�1
actual operation. In the application of road transportation ⎪

am ≥ 0(m � 1, 2, . . . , p)
planning, in order to better promote this method, we will
conduct an in-depth discussion on the linear programming
method.
2.2.2. Characteristics of the Linear Programming Mathe-
matical Model. 'e objective function of a linear pro-
2.2.1. Mathematical Model of the General Linear Program- gramming problem is a linear function; in linear
ming Problem. Linear programming is also known as linear programming, all constraints can be expressed as linear
programming. In mathematics, linear programming refers formulas.
to the optimization problem in which both the objective Linear programming is an important branch of opera-
function and the constraints are linear. 'e mathematical tions research and is widely used in military operations,
model of a general linear programming problem can be economic analysis, business management, and engineering
expressed in the following form: technology. It can rationally use limited human, material,
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Mathematical Problems in Engineering 5

financial, and other resources to make optimal decisions, Solving a class of linear programming problems is to find
thereby providing a scientific basis. a solution from a set of formulas satisfying constraints to
maximize it.
A solution A � (a1 , a2 , . . . , ap )D that satisfies the above
2.2.3. Standard Form of Linear Programming. Because there constraints is called a feasible solution to the linear pro-
are different contents and forms between the objective gramming problem. 'e set of all feasible solutions is called
function and the constraints, the linear programming the feasible region as shown in Figure 3.
problem has different expressions. For ease of discussion, the 'e feasible solution that maximizes the objective
standard format for a linear programming problem is function is called the optimal solution.
written as Suppose I is the p ∗ q order coefficient matrix (p > q) of
p the constraint formula system, and its rank is q. J is a full-
max c � 􏽘 im am rank submatrix of q ∗ q in matrix I, and J is a basis for linear
m�1 programming problems. Assuming no loss of generality,
p (3) then



⎨ 􏽘 inm am � jn (n � 1, 2, . . . , q) i11 · · · i1q
s.t.⎪ m�1

⎩ ⎜


⎜ ⎟



am ≥ 0(m � 1, 2, . . . , p) J �⎜
⎝⋮ ··· ⋮⎟
⎜ ⎠ � 􏼐R1 , . . . , Rq 􏼑.
⎟ (7)
iq1 · · · iqq
In the standard form of linear programming model, the
objective function is to find a maximum value (or a mini- Each column vector Rm (m � 1, 2, . . . , q) in J is called a
mum value), and all constraints are formulas of equality, basis vector and is a variable corresponding to basis vector
while the right-hand end constant jn of the constraint Rm , and am is called a basis vector. Variables other than basis
condition is all negative, and the value of the variable am is vectors in linear programming are called nonbasic variables.
non-negative.
For linear programming problems that do not satisfy the
standard form, they can be transformed into the standard 2.3. Construction of the Optimization Model. Selection of
form by the following methods. variables: the decision variable of the transportation problem
'e objective function is to find the minimum value, that has self-evident economic significance, that is, the quantity
is, of goods from one dispatcher to another dispatcher, and the
p quantity from n dispatchers to mth dispatcher is anm .
min c � 􏽘 sm am . (4) Secondly, the determination of the objective function of the
m�1 problem can minimize the shipping cost and find the
minimum value.
Because solving min c is equivalent to solving max(−c), Constraints: after the variables are determined and the
let c‘ � −c, that is, objective function is constructed, the corresponding con-
p p straints are given. 'e constraints of the transportation
max c‘ � − 􏽘 sm am � 􏽘 −sm 􏼁am . (5) problem include three constraints: the constraints of the
m�1 m�1 number of shipments, the limit of the price, and the no-load
Calculations are performed on unrestricted variables. If condition.
the variable a represents the difference between the planned Construction of the model: the transportation problem is
quantity in one year and the planned quantity in the pre- a very common linear programming problem; because of its
vious year, it is clear that the value of a can be positive or special structure, it is much easier to solve than the simplex
negative. At this time, it can be made a � a‘ − a‘‘, of which method. 'ere are generally three steps to establishing a
a‘ ≥ 0, a‘‘ ≥ 0, and bring it into the linear programming mathematical model from a practical problem: find decision
model. variables in terms of factors that affect what you are trying to
achieve. 'e objective function is determined by the func-
tional relationship between the decision variables and the
2.2.4. Solutions to Linear Programming Problems. For linear purpose achieved. 'e constraints to be satisfied by the
programming problems, decision variables are determined by the constraints im-
p
posed by the decision variables.
Model building of supply and demand balance: there are
max c � 􏽘 sm am ,
m�1
q delivery points I1 , I2 , . . . , Iq to send a certain material, and
p
the delivery volume is i1 , i2 , . . . , iq ; in addition, there are p

⎧ (6)

⎨ 􏽘 inm am � jn (n � 1, 2, . . . , q) receiving points J1 , J2 , . . . , Jp , and the receiving amount is
s.t.⎪ m�1 j1 , j2 , . . . , jp , respectively. It is known that the freight rate

⎩ for transporting a unit of material from In to Jm is snm , and
am ≥ 0(m � 1, 2, . . . , p) q
the total delivery volume 􏽐n�1 in of q shipping points is equal
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6 Mathematical Problems in Engineering

p p
X1 􏽐n�1 in > 􏽐m�1 jm , and the mathematical model of the
transportation problem is
q p
min 􏽘 􏽘 snm anm
n�1 m�1
p




⎪ 􏽘 anm ≤ in (n � 1, 2, . . . , q)

⎪ (11)
⎪ m�1


s.t.⎪ q
⎪􏽘a � j
⎪ (j � 1, 2, . . . , p)

⎪ nm m

⎪ n�1


anm ≥ 0(n � 1, 2, . . . , q; j � 1, 2, . . . , p)
In order to make full use of the transportation mode in
which supply and demand are balanced, the first set of
Feasible Domain
inequalities in the above formula are transformed into
formulas, and it is necessary to consider an imaginary sales
q p
place Jp+1 with a demand of j � 􏽐n�1 in − 􏽐m�1 jm , which is
X2 used for saving goods. Suppose the transport volume from In
to Jn�1 is an,p+1 , then there is
Figure 3: Feasible domain.
p p+1

q 􏽘 anm + an,p+1 � 􏽘 anm (n � 1, 2, . . . , q). (12)


to the total receiving volume 􏽐n�1 jm of p receiving points. m�1 m�1
Try to find the transportation plan that minimizes the total
freight cost under the condition of balance between supply Now consider that Jp+1 is the assumed pin, and in fact, if
and demand. the supply from the nth starting point In to the first p re-
A mathematical model of this problem can be con- ceiving points Jm is still not finished, the excess amount is
structed. Assuming that the volume of goods shipped from stored locally, so in fact Sn,p+1 � 0.
In to Jm is anm , the total freight is To sum up, in the case of sending more than receiving, its
mathematical model can be
q p
C � 􏽘 􏽘 snm anm . (8) q p+1 q p
n�1 m�1 min c � 􏽘 􏽘 snm anm � 􏽘 􏽘 snm anm ,
n�1 m�1 n�1 m�1
Furthermore, since the total supply transmitted by the p+1
nth transmitting station to the p receiving stations is equal to ⎪



⎪ 􏽘 anm � in (n � 1, 2, . . . , q)
the supply of In , and the number of receivers received by the ⎪
⎪ (13)


mth receiver, there are the following constraints: ⎨ m�1
s.t.⎪ q
p ⎪
⎪ 􏽘 anm � jm (j � 1, 2, . . . , p)


􏽘 anm � in (n � 1, 2, . . . , q). ⎪
⎪ n�1


m�1
(9) anm ≥ 0(n � 1, 2, . . . , q; j � 1, 2, . . . , p)
p
􏽘 anm � jm (j � 1, 2, . . . , p) 'erefore, in this model,
q p p+1
n�1 􏽐n�1 in � jp+1 + 􏽐m�1 jm � 􏽐m�1 jm , so the above formula is
a transportation model with balanced production and sales.
'us, the mathematical model for this problem is Figure 4 shows the research technology roadmap of this
q p paper.
min � 􏽘 􏽘 snm anm ,
n�1 m�1
p
3. Experimental Results of Road Logistics


⎪ Transportation Research Based on

⎪ 􏽘 anm � in (n � 1, 2, . . . , q)

⎪ (10)



m�1 Linear Programming
s.t.⎪ q
⎪ 􏽘 a � j (j � 1, 2, . . . , p)
⎪ W Logistics Company (referred to as W Company) is a

⎪ nm m

⎪ n�1 representative third-party logistics company. 'e company


anm ≥ 0(n � 1, 2, . . . , q; j � 1, 2, . . . , p) provides transportation, warehousing, loading and
unloading, distribution, and other services for the majority
'e model is a linear programming model with q ∗ pq of users across the country. 'e company is currently re-
variables and q + p − 1 independent constraint formulas. sponsible for transporting the P and Q products of company
Model building of supply and demand imbalances: when H from various warehouses to various sales outlets. At
the output is greater than the sales, there are present, we have learned that the total market demand in
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Mathematical Problems in Engineering 7

Road logistics and transportation

Elements of road Characteristics of road Area A Area B Area C


logistics transportation logistics transportation

A2 A5 A10
Construction of optimization model of highway logistics A9
A1 A6
transportation cost based on linear programming
B3 B5
B2 B4
Determination of
selection of variables
Constraint Conditions B1
A3
A8
A4
A7
supply and Supply and demand
demand balance imbalance

Figure 5: Supply and demand layout diagram.

Case Study-Taking W Company as an Example


Combined with the storage capacity of each warehouse,
Figure 4: Research technology roadmap. it can be seen that the requirements of Area B can no longer
be met. Taking into account the transportation situation, and
various places is 102 tons. Company H has 10 warehouses according to the principle of nearby access, it can be con-
and 5 sales locations, all of which can be transported by road sidered to borrow a batch from each of the adjacent areas A,
without administrative or engineering obstacles, so planning A4, and C, C9.
and design can be carried out according to the full mapping Supply planning for Area A:Area A has two sales points,
relationship. B1 and B2, the four warehouses A1, A2, A3, and A4 are based
'e locations of supply and demand are shown in on the principle of picking up goods nearby, and their supply
Figure 5. 'e rectangle is the warehouse, and the small circle and transportation are shown in Table 2.
is the point of sale. Combined with the product freight rate map, the
minimum freight rate for section A can be calculated to be
2,400rupees.
3.1. Background Information of W Logistics Company. Supply planning for Area B:Area B has two sales points,
Overview of each warehouse: Company W has a total of 10 B3 and B4, and four warehouses, A5, A6, A7, and A8. Since
warehouses, as shown in Figure 5. In the warehouses A1- the two sales points B3 and B4 are in short supply, we have
A10, two kinds of commodities, P and Q, are stored, re- borrowed some products from Area A and Area C, re-
spectively. All warehousing and sales locations are con- spectively. According to the principle of nearby procure-
nected by roads and extended access roads, which are ment, its feeding and dispatching conditions are shown in
convenient and fast. 'e above production site is flat and Table 3.
safe to drive. Figure 6 shows the inventory at various Combined with the product freight rate map, the
warehouses, and Figure 7 shows the shipping distance. minimum freight rate for section B can be calculated to be
It is known that the freight rate of a 15-ton car is 3 rupees 2460rupees.
per kilometer, and the freight rate is proportional to the Supply planning for Area C:Area C has one point of sale
mileage. Follow this rule. Combine the above information. at B5 and two warehouses at A9 and A10. According to the
Calculate the freight for each warehouse, as shown in principle of picking up goods nearby, the supply and
Figure 8. transportation are shown in Table 4.
Overview of point of sale: on the basis of comprehensive Combined with the product freight rate map, the
research, W Company conducts overall planning for each minimum freight rate for section C can be calculated to be
sales network. According to the supply and demand profile, 750rupees.
nearby pickup, supply balance, and other factors, the de- According to the experience plan of each section, the
mand for each point of sale transferred from neighboring aggregate transportation cost of the whole line is calculated
warehouses is counted, as shown in Figure 9. 5610rupees.
Conventional method of material dispatching-road
section zoning method: according to factors such as supply
and demand, terrain, and traffic conditions, the working area 3.2. Construction of the Optimization Model. 'e supply and
of the vehicle can be roughly divided, which is usually called demand dispatch table is drawn according to the supply and
“section division.” It can be roughly divided into three parts: demand of the supply and demand point and the freight rate.
A, B, and C. 'e corresponding demand of each branch and Now, the analysis and modeling are carried out for the P
the corresponding warehouse supply are shown in Table 1. product and the Q product, respectively.
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8 Mathematical Problems in Engineering

14 14

12 12

10 10
Storage (tons)

Storage (tons)
8 8

6 6

4 4

2 2

0 0
A1 A2 A3 A4 A5 A6 A7 A8 A9 A10
warehouse name warehouse name

P product P product
Q product Q product
Figure 6: Storage capacity of each warehouse.

160 180

160
140

140
120
Transportation distance (km)

Transportation distance (km)

120

100 100

80 80

60
60
40

40
20

20 0
A1 A2 A3 A4 A5 A6 A7 A8 A9 A10
warehouse name warehouse name

B1 B2 B1 B2
B3 B4 B3 B4
Figure 7: Shipping distance.

First solve the P product, and the transportation problem the total receiving volume 􏽐lm�1 bm of 5 receiving points is 55
of the P product can be expressed as follows: it can be known tons, which is a problem of supply and demand imbalance.
that the shipping cost from each warehouse to each shipping Because supply exceeds demand, we set up another sales
unit is snm (n � 1, 2, . . . , 10; m � 1, 2, . . . , 5). 'e total de- office B6 that requires 15 tons, which translates into a supply
livery volume 􏽐kn�1 an of 10 shipping points is 70 tons, and and demand balance transportation problem. 'e next step
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Mathematical Problems in Engineering 9

500 500

450

400 400

350

300 300
Product freight

Product freight
250

200 200

150

100 100

50

0 0
A1 A2 A3 A4 A5 A6 A7 A8 A9 A10
warehouse name warehouse name

B1 B4 B1 B4
B2 B5 B2 B5
B3 B3
Figure 8: Product freight rates.

18 18

15 15

12 12
Demand (tons)

Demand (tons)

9 9

6 6

3 3

0 0
B1 B2 B3 B4 B5 B1 B2 B3 B4 B5
Sales location Sales location
P product Q product
Figure 9: Demand statistics figure.

is to build a mathematical model of this problem. Assuming the supply of An , and the total amount received
that the delivery volume of goods from An to Bm is xnm , the by the mth receiving location Bm to the 10 shipping
total freight is R � 􏽐kn�1 􏽐lm�1 snm xnm . points is equal to the demand of Bm . So, there are the
Furthermore, note that the total amount sent by the following constraints: 􏽐6m�1 xnm � an (n � 1, 2, . . . 10),
nth warehouse An to the 6 receiving locations is equal to 􏽐10
n�1 xnm � bm (m � 1, 2, . . . 10).
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10 Mathematical Problems in Engineering

Table 1: Demand detail table.


Demand (tons)
Area A Area B Area B
Warehouse
B1 point B2 point B3 point B4 point B5 point Total
of sale of sale of sale of sale of sale
A1 8 8
A2 4 4
A3 5 4 9
A4 17 2 19
A5 13 13
A6 7 7
A7 8 8
A8 9 9
A9 1 10 11
A10 1 11
Total 13 25 23 17 11 99

Table 2: Supply and dispatch table in Area A.


Point of sale
B1 B2
Warehouse P product Q product P product Q product
A1 5 3 0 0
A2 0 0 3 1
A3 3 2 3 1
A4 0 0 9 8
Total demand 8 5 15 10

Table 3: Supply and dispatch table in Area B.


Point of sale
B3 B4
Warehouse P product Q product P product Q product
A4 2 0 0 0
A5 7 6 0 0
A6 0 0 5 2
A7 5 3 0 0
A8 0 0 6 3
A9 0 0 1 0
Total demand 14 9 12 5

Table 4: Supply and dispatch table in Area C.


Point of sale
B5
Warehouse P product Q product
A9 6 4
A10 0 1
Total demand 6 5
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Mathematical Problems in Engineering 11

'us, the mathematical model for this problem is min � and cost. In addition, it is worth noting that the quality of
􏽐kn�1 􏽐lm�1 snm xnm , transportation should also receive great attention. If the
transport is not stored properly, this will affect the quality of

⎧ 6 the product and increase the shipping cost. All in all, under

⎪ 􏽘 xnm � an (n � 1, 2, . . . 10) the premise of reducing transportation costs, it is necessary



⎨ m�1 to ensure that the quality of products meets the needs of
s.t.⎪ 10 .

⎪ customers, and to improve the quality of products under the

⎪ 􏽘 x
n�1 nm
� bm (m � 1, 2, . . . 10)

⎩ premise of controlling costs. 'is paper only studies the cost
xnm ≥ 0(n � 1, 2, . . . 10; m � 1, 2, . . . 10) of transportation in the logistics supply chain. However, the
transportation activities of logistics enterprises are multi-
Bring it into the computer software to solve: the total
link. Due to the influence of the theory of contradictory
freight of P product is R 3450 (rupees).
benefits, the excessive pursuit of transportation costs in a
In the same way, the Q product is solved, a mathematical single link is likely to lead to an increase in the total
model is constructed, and the total freight of the Q product is transportation cost. 'erefore, in many cases, it is necessary
finally obtained as 2040 rupees. to study the cost from the perspective of global cost
In summary, the minimum shipping cost optimization.
R 3450 + 2040 5490 (rupees) can be obtained.
Combined with the comparative analysis of the results
Data Availability
obtained by the linear programming model and the road
section division method, the total freight calculated by the 'e data used to support the findings of this study are
road section division method is 5610 rupees, and the total available from the author upon request.
freight calculated by the linear programming method is 5490
rupees. By comparing the segmentation method, it is found
that the linear programming method saves the trans-
Conflicts of Interest
portation cost compared with the segmentation method in 'e author declares no conflicts of interest.
the overall transportation cost. In resource allocation, it is
difficult to obtain the best dispatching scheme by the tra-
ditional road partitioning method. Using the resume model Acknowledgments
established by the linear programming method, the optimal 'is research study was sponsored by Chongqing Education
operation diagram can be obtained quickly, so as to for- Committee, “'e Research on the Developing Index of
mulate the optimal operation diagram for the logistics Digital Inclusive Finance” (KJQN201903207). 'e author
company. thanks the project for supporting this article.
'erefore, it is feasible and effective to use the linear
programming method to optimize the road transportation
cost of logistics enterprises. Using the linear programming References
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