Research On The Planning Method Of The Medical Logistics Distribution System

Logistics as "the third profit source", plays a vital role in reduce costs, improveefficiency and enhance market competitiveness of enterprises. Distribution is an importantlink in the logistics operation, the efficiency of the distribution affects efficiency of theentire logistics network. Efficient logistics and distribution system can effectively enhancethe competitiveness of enterprises. China’s logistics industry shows a high input, lowincome, extensive operating status regarding the current cost inputs and revenue. On theone hand, the expenses costs and time costs are much higher than developed countries. Onthe other hand, the distribution efficiency cannot be significantly improved with thosehigh costs. Therefore, the contradiction between low distribution capacity and the highgrowth rate of the pending distribution volume of cargo gradually stands out. Improvingthe efficiency of the distribution process has become a key during the whole improvementof the efficiency of the entire logistics chain. So, how to improve distribution efficiencyand to reduce distribution costs to increase the income of distribution has become anurgent problem. As a special delivery item in the distribution industry, drugs appear in thecirculation process in the pharmaceutical market. Distribution of drugs and other goods’distribution have something in common basically, such as the delivery process, deliverymode etc. But there are also some differences, such as storage conditions, transportationconditions, delivery timeliness, which follow the stringent requirements for drugs. Fromthis point of view, the improvement of distribution efficiency is more important for thedrugs.Since1959, when VRP (vehicle routing problem) came up, the vehicle path planninghas been a research focus. In the distribution process, the cost increases due to the wasteof capacity, the wrong choice of the route which results in waste of time and fuel. Thesewaste of resources directly lead to time-consuming in delivery process and its lowefficiency. The purpose of VRP study is to seek the most time-saving, or minimum cost, orshortest distance of delivery path, to improve distribution efficiency and reducedistribution costs. Therefore, any distribution should not be blind, and need to use thescientific analysis and calculation method to select a reasonable distribution path. Thispaper aims to take the improvement of the Chifeng Leimeng Drug Distribution Co., Ltd.‘sdistribution status quo as the background, to find effective way to improve the distributionefficiency of the company and to save distribution costs through the distribution path planning. In this paper, the Saving Algorithm method is used as the distribution pathplanning, which applies to fewer distribution outlets of the distribution path planningprocess. Combine the application of the Saving Algorithm method and the existingdistribution facilities of the Chifeng Leimeng Drug Distribution Co., Ltd., this paperintends to find out the most saving way for the company’s distribution or the smallestturnover distribution program. After detailed discussion of the program, the paper alsoputs forward suggestions for improvement.Firstly, this paper analyzes the status of pharmaceutical logistics industry and existingproblems, and then further clearly outlines logistics related concepts, basic theory, basicprinciples and methods. Secondly, on the basis of theoretical guidance, the paperdetermines the significance of logistics planning and also elaborates theories of logisticsplanning. Finally, it relies on the case study. Through actual research, it clearly states thecurrent status of the operation of the Chifeng Leimeng Drug Distribution Co., Ltd..Combine with Saving Algorithm method discussed in this article, this paper plans drugsdistribution path based on the company’s distribution network, the demands of eachnetwork, the existing vehicle and other conditions. This paper focuses on logisticsmodernization, information technology, based on the research object of the ChifengLeimeng Drug Distribution Co., Ltd.. After clear statement of the company’s distributionproblems and its future development-oriented goal with the basis of the informationnetwork circulation, this paper analyzes the methods on scientific calculation andimprovement of the distribution efficiency of the company to lay a scientific foundationfor the development of distribution planning. In the end, it may provide some referencesfor other industries’ distribution planning.