Research On Optimization Of Distribution Centers Location Problem Based On Inventory Decision

The location of distribution centers plays an important part in logistics network design, for it connects the suppliers and consumers, can directly affect the functions of logistics network, and can also devastate the improvements of the efficiency of logistics activity. Generally speaking, the traditional location problem tend to ignore the factors about inventory or transportation in the very beginning of network design, only make them into consideration afterwards. Those models lack the ability to handle the interaction of location decisions and decisions of other levels. Thus, in order to satisfy customer's needs with the lowest cost, entrepreneurs need to integrate location problems with decisions from some other levels, such as inventory decision or transportation decisions, to balance the overall costs comprehensively, so as to design the most effective network. This paper mainly focuses on location problems integrated with inventory decisions on the basis of the present achievement that had been achieved by scholars at home and aboard.In this paper, problems about location of distribution centers and the allocation of customers and inventory decisions have been studied particularly. The target is to determine the quantity, location and inventory strategy of the distribution centers and the allocation of customers under a certain customer service level. In the meantime, make sure that the total costs minimum.Customer's needs are supposed to be random and submit to normal distribution and independent, and there's lead-time for orders, and capacity of distribution centers are limited. In this case, in order to achieve a certain customer service level and to reduce the inventory as much as possible, quantitative replenishment inventory strategy is chosen. A model is developed considering a stochastic demand and lead time to minimize the total cost.This thesis first analyses the background and propose of the problem, and then shows the innovation of this article, and then proposes the objective and the main idea. Secondly introduces the recent studies on location of distribution centers especially location of distribution centers based on inventory decision. And then the methods to solve this problem, at the mean time compares several models that being used quite frequently; then analyses the costs related to location of distribution centers based on inventory decision, and then forms a new model about location of distribution centers based on inventory decision. In the end uses lingo, a kind of software to solve optimization problems to solve the problem. Then introduces a case of distribution centers location to prove that the model is appropriate and the tool to solve the problem is effective.