Model of logistic costs in the commercial network of "Armada" company

The author conducted a study aimed to study a distribution system and developing a model that allowed evaluation of total costs incurred by commercial company “Armada” during the transportation and storage of the goods in dependence of delivery schedule (composition, quantities and frequency of the goods of consignment). The goods are distributed from the central warehouse among the outlets located in different regions of the Russian Federation, and delivery service of a logistic company is using. The result of the study is the proposed deterministic model, which allows obtain a balance between the volume of batches and the frequency of their shipment, and thereby optimize or at least lower some of the company’s costs