Creation of New Distribution Network – Distribution of Mail in Slovak Republic

Abstract

In recent years the providers of logistic services are under big pressure to lower their expenses and improve their quality. One way of accomplishing this task is the centralization of logistic activities. The paper presents possible methods for restructuring the distribution network on the case of Slovak Post p.l.c. By reducing the number of centres for distribution and by creating larger centres one can expect improvement in the process efficiency. There is no simple method to find the optimal distribution network. One possible way to tackle this problem is to use aggregation methods to group customers on the micro and macro levels. Several aggregation methods, including two new ones are presented and compared for the centres’ and delivery districts. New measurements for the quality of aggregation are created and tested on real data using all the discussed aggregation methods. KEY WORDS: network creation, aggregation, quantitative methods, fuzzy logic, distribution districts