Research On The Method Of Location Selection Under Condition Of Supply Chain

In the past, the company reduced its operation costs through improving productivity and saving materials to strengthen their competitive edge. However, due to individuation and variation of customer demand, these methods couldn't meet the needs of customer. Companies have to seek new theories and approaches of management. The theory of global manufacturing chain and the supply chain exactly satisfies this demand. A good supply chain can rationalize and optimize the logistic system, whether the selection of each location, which is an organic part in logistic network, is rational or not is the critical point of the mode, structure, framework and even the entire performance of supply chain, that further more has an influence on the regional economy. So the research on the method of location selection under condition of supply chain is meaningful in both economic and practical aspects.This paper studies some problems of location selection from supply chain angle. Firstly it analyzes the theory of location decision-making in logistic system under condition of supply chain, introduces the basic concept of supply chain management and logistic system, and brings forward location goal, principles, influencing factors and standards of location. Then this paper analyzes several typical methods of location. There are mainly two kinds of methods for location: qualitative one and quantitative one. Qualitative one has advantages in completeness for all related factors, but it has drawbacks in the correctness for the quantitative of cost and efficiency. Otherwise, quantitative one has exactly opposite characteristics. Therefore, this paper brings up an integrated analysis method of location selection by comparing both the advantages and disadvantages of them. Firstly, this method analyses cost factors from quantitative angle, finds out the feasible primary election projects;then it does target evaluation to the factors that can not be quantified from qualitative angle, and find integrative evaluation value for each feasible primary project, so the priority of feasible primary projects is gained, and the optimum primary election projects can be found. Finally this paper gives an example for this method, and verifies its rationality through computer calculation for it.This paper puts forward an excellent approach for location selection under condition of supply chain, it ensures location selection scientific and correct, and it also makes location decision more realistic.