Logistics System Network Design Towards Sustainability in the Era of Data Analytics

The supply chain’s underlying infrastructure affects the efficiency and design of distribution routes. As such infrastructure is associated with substantial capital investments, it is crucial to consider the network design and the location of various facilities. The supply chain network design in this context encompasses two major problem classes; the facility location problem aiming to find the optimal location for various facilities, and the vehicle routing problem aiming to find optimal routes to serve a set of customers by a fleet of vehicles from various facilities. Moreover, these problems are interconnected as the facility locations affect the demand fulfillment and the vehicle routing. Such problems are often solved with data analytics, in particular with optimization techniques within the field of Operations Research, which is concerned with the mathematical modeling and algorithmic solution of decision-making problems.