Supply Chain, Distribution Center Location Problem

In the past, the company decreased its operation costs through improving productivity and reducing the materials. But with the development of technology and variable demands of customer, these methods couldn't meet the needs of competition. Corporations have to seek new theory of management; the theory of global manufacturing chain and the supply chain exactly satisfies this demand. Distribution center is a very important part of a supply chain, whose efficiency and costs are related by the distribution center. Therefore it is necessary to research the distribution center.In this paper, a evaluation model, including manager's knowledge, was erected by using DEA method. According to the model's conclusion, the top manager can acquaint each center's operation condition, which is the base of decision. If current distribution centers are not efficient, it's necessary to reconfigure them again. So an optimization model was proposed to solve this question. Two related models were constructed on the basis of the supply chain network. One is single node DBA mixed integer programming (SDMIP), the other is double node DBA mixed integer programming (DDMIP). The result of DBA model is used as a restraint in the reconfiguration model, which is one of the strong points of this paper. The purpose of this paper is to support the action of selecting address and allocate resource more efficiently. Also an example was erected to verify the model proposed in this paper. In the example a useful conclusion was drawn through analyzing three conditions. It will improve efficiency by six percent in this paper and the resource allocated to the distribution center is reduced if the model is used. So the method proposed in this paper can be used in practice.During the paper, these facts have been highlighted. First, the factors, which affect the distribution center, and the principles have been discussed. Second, a method has been used in evaluating the efficiency of the distribution center. The advice of workers has been involved. It's the first time that this method is used in this field. Third, a model including the result of evaluation has been erected in the paper.Furthermore, an extend model on the basis of the model is conducted, which can be used to deal with the difficult condition.Because my knowledge is constraint, so there must be some mistakes in the paper. I hope this paper could be useful for the companies.