Study On Location Model Of Logistic Center Based On Bi-level Programming

As the social economic develops, the traditional sources of economic income disappear. At the same time, logistic comes out as the third one and attracts more and more attention. In practice, it is by means of logistic that the enterprises get the resources, transport half-product from one place to another and sale their end product. As for enterprises, smooth logistic is the guarantee of efficient operations. Distribution center is the key part of the whole logistic system, responsible for storing, transporting, coordination and so on. Proper location and scale of the distribution center require deep consideration. The research of distribution center location is something of practice and economic value.Basing on the study of exist location theory and bi-level programming theory, according to the process of real life location decision, the location decision model of distribution center based on bi-level programming is formed. In this model, the producer is in charge of the location decision. After the locations are settled, the retailers choose one distribution center from them to satisfy its demand according to minimizing cost. The scale of the distribution centers is calculated accordingly. The thought of the model is more reasonable to the formulation of the logistic network in practice. Based on the characteristic of the model, the rationale and procedures of GA and PGSA are introduced. At the end of this paper, the detailed process of using GA to solve the model is presented. A numeric example is used to testify the effectiveness of the model and the algorithm.