An Optimization System for Procurement Logistics Including both the Cost of Ground Rent and the Cost of Procurement Logistics

Abstract

A logistics system is very important for an e-commerce company because the logistics costs of such a company are higher than that of other retail business companies. The development of a more effective logistics system should include both the cost of ground rent and the cost of procurement logistics. This paper proposes such a logistics system and simulates the use of a real e-commerce company's data. The simulation demonstrates that this system is effective enough to reduce total losses by 40%.