Research On Warehouse Layout Optimization And Freight Volume Distribution Of Steel Enterprises

With the acceleration of economic globalization and the chance that China joining the WTO, steel enterprises are facing various opportunities and challenges. Steel manufacturers are gradually paying more and more attention to logistics for the reason that logistics is the third source of profit. In order to upgrade the competitive capability in the logistics industry, steel enterprises should explore the way how to decrease the logistics costs. Warehousing cost is an important component of logistics costs. In this paper, logistics problems are presented and investigated in terms of the warehouse layout.This paper firstly expounded warehouse layout and freight volume distribution theories. After that, according to the previous research results, this paper established the warehouse layout optimization and freight volume distribution model which is based on the minimum cost principle. The total costs consist of the transport cost, fixed costs of the warehouse (construction costs) and variable costs of the warehouse. According to the breaking point annulus theory, if the interaction force between the warehouse and the filiale reaches the maximum, then the filiale belongs to the action range of the warehouse. According to the logistics field theory, the filiale of steel enterprises affected by the force is similar to the charge in the electric field affected by the force. In this paper, on the basis of these two theories, I construct the formula of the interaction force that imposed on 'the Clients' from the warehouse. Also I establish the warehouse layout optimization and freight volume distribution model based on the maximal interaction force. Then a mathematical model is proposed with considering the two aims which contain the minimum cost and the maximal interaction force. After that, I set up the LINGO model to solve this mathematical model. Finally, the model is utilized to analyze the warehouse layout problem and stock problems from Hengyang Steel Tube Group Co. Ltd. The analysis results of Hengyang Steel prove that the proposed model has strong effectiveness and high practicality.