Costs Optimization Of Distribution Center Based On Time-driven Activity-based Costing And Theory Of Constraints

With the rapid development of china’s society and economy, logistics which plays a more and more important role as the fundamental industry of china’s society and economy nowadays. As the key part and hub link of logistic service chain, the effectiveness of distribution center has a direct impact on efficiency of logistic chain. The core problem of the effectiveness of distribution center is the costs of distribution center, in another word, how to balance the optimal total costs of distribution and the best customer service.In this paper, combined with time-driven activity-based costing, information entropy theory and distribution centers operating procedures theory, a model named optimization model of distribution center costs has been developed. In order to solve the model, MATLAB Genetic Algorithm and Direct Search Toolbox (GADS) is introduced, theory of constraints is used to improve the results. At last, a case study is used to verify the feasibility of model. Based on the above study, the works are as following:First of all, the first chapter and the second chapter of paper is introduction and elaboration of related theories. in details, these two parts include the introduction of background, the meaning of topic and fundamental theories, which has laid a solid theoretical foundation of the establishment of optimization model.Secondly, The third chapter is about the establishment of optimization model of distribution center costs, which is one of the core chapters in text. This chapter elaborates how to establish the optimization model which has a binary target on minimization of total direct costs of the distribution center and unallocated indirect costs of distribution center by combining time-driven activity-based costing information entropy theory and distribution centers operating procedures theory.The fourth part of paper is algorithm design, which is aim to solve the optimization model. This part includes two knowledge sections:the elaboration and description of genetic algorithm and the use of MATLAB Genetic Algorithm and Direct Search Toolbox (GADS).How to write and call M.file is the main aim of the latter section. At last, a case study and summaries have been introduced. The case study includes the introduction of case background, the calculation of the model parameters, the results of operating genetic toolbox, improve unallocated indirect cost of the optimal solution by TOC and the meaning of optimization. The summary part mainly contains the works have been done; figure out deficiencies and where is the follow-up research prospects.