It Distribution Center Location Decision

With the transition from the period of high-speed growth to the period of stabilized development in IT industry, the demand and supply of IT products in the consumption market has diverted from supply-falling-short-of-demand to supply-exceeding-demand, too. IT industry in our country has come into the new era, which is dominated by application and service, not by technology and products. A difficult problem appears, "IT enterprises should decrease operation cost while they should improve the service level. IT enterprises should offer more choice to customers while they should increase the speed of response."Technology is no more the only magic weapon of the IT enterprises to get the upper hand of subdue in the consumption market, service of the IT enterprises has become the important index to choose products by consumers. And the distribution of products is one of the services provided by the IT enterprises. It is the premise of the good distribution system that the IT enterprises supply the service, which is high-quality and high-efficiency. At the same time, the reasonable location of the distribution centers directly effect the operation efficiency of the distribution system. The function of distribution centers gradually visualizes, which make managers attach more and more importance to the location decision-making.This paper sums up the logistics operation characteristics of IT enterprises through analyzing the development status quo of the IT industry. It summarizes the function of the distribution centers through introducing the conception, classification of distribution centers. It offers tools of location decision-making for case study through reviewing the location models. Combined the above analysis result, the suitable model is chosen to apply in the case study and we can get the location decision-maiking of distribution center, which proves that location models can be utilized during the course of location decision-making and can help the decision-making.