Location Optimization of Offline Physical Stores Based on MNL Model under BOPS Omnichannel

Abstract

With the continuous upgrading of consumer demand and retail modes, more and more retailers are switching to an omnichannel retail mode. In order to study the location problem of offline physical stores of online retail enterprises that plan to implement the BOPS (Buy Online and Pickup in Store) omnichannel retail model, this paper considers consumers’ choice behavior under the omnichannel retail model; uses the MNL (Multinomial Logit) model to depict customers’ choice behavior between the online channel, BOPS channel, and offline physical channel; and constructs a location optimization model of offline physical stores with the goal of minimizing the enterprise’s cost. According to the characteristics of the model, an improved genetic algorithm was designed; the algorithm was improved on chromosome selection mode, crossover, and mutation rules. Finally, an example is calculated, and the physical store location scheme of a retail enterprise and the vehicle routing optimization scheme under the two-level distribution network are obtained, which verifies the effectiveness of the model and algorithm and provides a scientific reference for the physical store location decision of online retail enterprises planning to implement the BOPS omnichannel retail model. The impact of freight, return rate, and service level of physical stores on the location of offline physical stores is analyzed. The results show that in the process of expanding offline physical stores to implement the BOPS omnichannel retail model, online retail enterprises can reduce enterprise costs by improving the freight level and service level of the physical store. The higher the return rate of the online channel, the more necessary it is to expand offline physical stores, and the lower the enterprise cost. At the same time, management suggestions are put forward for the enterprise operation under the BOPS omnichannel retail mode.