Research on Location Model of FMCG Supply Chain Network under the Mode of Cross-level Service

ABSTRACT

In 2020, the FMCG market suffered a severe impact due to the COVID-19 pandemic. The price of FMCG fell for the first time in five years as consumers turned to buy cheaper commodities because of the uncertainty. However, the overall sales growth of FMCG remained at a high level. It indicates that the FMCG enterprises are supplying rising demand at decreasing prices, which results in lower profits. In addition, due to the rising price of raw materials, further reducing the profits of FMCG enterprises. In view of the problems above, reducing cost has become the primary issue considered by the FMCG enterprises. Therefore, this paper proposes a mode of cross-level service to optimize the FMCG supply chain network in view of the long distribution channel chain of FMCG, builds a model of RDCs location and capacity design under the mode of cross-level service, and obtains the optimal solution by Supply Chain Guru. © 2022 SPIE