Regional Distribution Center Location For China National Petroleum Based On Dynamic Bi-level Programming Method

Logistics center's location study has been developed by the academic community for many years, resulting in a number of effective site selection models, but most of these models are static site, that is, the address once determined will not change the basic, which is not consistent with the economic environment. Over time, customer demand, the cost of various fees and related policies may change, then the selection of sites for enterprises to use the original program may not be able to adapt to environmental changes, thereby impeding the development of enterprises. Therefore, the logistics center of the site planning for the future must be able to reflect changes in the economic environment and consider the dynamic factors on the logistics center for dynamic site.In addition ,when choosing logistics center, customers are also an important factor in site selection, logistics center location should focus on both policy makers and customers point of views, in meeting customer service requirements of statute of limitations under the premise of the logistics center to determine the optimum location to achieve total cost of the smallest.Based on these two aspects, for the location of China National Petroleum's RDC, in this paper use dynamic bi-level programming model,this paper mainly does the following works:(1) Describes the background of location of the China National Petroleum's RDC, pointing out that the significance of its location, at the same time,give a comprehensive analysis of the location of the static and dynamic status of the site selection study domestic and abroad, then specify the content of this article and methods of major research .(2) Base on a lot of reading,pointing out the purpose of the site, principle, as well as the impact of location factors. And analyse common methods of logistics center location, focus on the dynamic bi-level programming model and its application in logistics center location.(3) Establish the dynamic bi-level programming model. And design process to solve the logistics center location model. First of all, forecasts the stages of planning period demands of customers, and then use MATLAB7.0 programming model for solving bi-level programm- ing,and finally to the reverse dynamic programming model to solve the optimal site layout.(4) Make full use of the data provide by China National Petroleum Northeast Chemical Sales Company to solve Regional Distribution Center Location problem,and provides a basis for decision making.Through the above-mentioned work, this paper has made the selection of sites for the program good value for money, savings ratio of 8% -13% for the North-East companies will generate substantial benefits, not only to reduce logistics costs, but also enable more efficient distribution, as well as improve the competitiveness of the enterprise and customer satisfaction.