A distribution network optimization problem for third party logistics service providers

Third party logistics service providers (3PLs) have an important role in supply chain management. Increasing cooperation with 3PLs is expanding in today’s business environment. Hence, 3PLs need to have an efficient distribution network to meet customer demands. Nevertheless, few researches have tried to propose a solution for distribution network problems of 3PLs. The optimization problem which is discussing in our study is solved in two stages. At the first stage, the assignment problem which includes assigning the order of the vehicles is solved with mixed integer programming by using GAMS 21.6/CPLEX. The output of the first stage is used as an input in the second stage. In this stage routes are determined for vehicles by developing a genetic algorithm by using C#.