To improve the customer service level, tobacco companies in China use the strategy of direct delivery. But this strategy has a great influence on the local company’s operation cost. In this paper, a distribution planning of the local company is made to decrease the operation cost. The distribution planning includes the location and choice of the distributed centers and the transferring points. In this problem, the Greedy Dropping Heuristic Algorithm is used twice to decide the distributed centers and transferring points. After the transferring points are set, the Vehicle Routing of each transferring points is presented. The savings algorithm is used in this process. To analyze the complicated data, as well as to make the decisions, GIS (Geography Information System) technology is used, which turns to be a great help.
Yu, Hai and Cai, Linning, "The Distribution Network Planning Using Geographic Information System (GIS)" (2004). ICEB 2004 Proceedings. 55.