An order fulfilment location planning model for perishable goods supply chains using population density

Abstract

The increased frequency of purchases and growing distances between the final distribution points of the perishable products and consumers are contributing to multiple handling, high intermediation, and a greater concentration of outlets selling perishables goods. These in turn have increased logistics costs, and inefficiencies in the supply chain. This study presents a modelling framework for locating perishable goods order fulfilment centers (OFC) near the consumer by using population density as a proxy for demand. The centrality and Borda count measures are used to identify optimal locations in perishable goods supply chain networks. We present a case study to demonstrate the applicability and efficacy of the proposed density-based spatial methodology.