Research On Site Selection Of SITONG Machinery’s Own Logistics Distribution Center

With the national investment in railway infrastructures is increasing, the existing railway mileage has reached more than20,000kilometers and the railway maintenance has also become an important daily work for railway operation and management organizations, and the demand on railway maintenance machinery appliances will show a rigid growth, driving the product demand of one of the most main supplier--Stone Machinery’s increasing. However, on the view of the current supplying situation on a key product part--E class bearing, which is needed by domestic railway maintenance machinery product’s manufacturer, there is some bad phenomenon as the delivery channels confusion、the existing of a large quantity of short--term profitable behavior and so on, seriously affecting the establishment of the stable and long--term corporation partnership between upstream and downstream enterprises in the same supply chain, and it not only restricts the further expand on the production scale of Stone Machinery’s, but also substantially increases products’unnecessary manufacturing costs, such as transport costs and ordering costs. Therefore, in order to reduce the manufacturing cost and guarantee Stone Machinery’s subordinate branches’needs on E class bearing, applying the advanced theory and technology of the logistics distribution including variables--value method、(1, L) stochastic storage strategy model、 the model based on capacitated facility location problem、 the mathematical model on the level analysis and implementing the new mode of "uniform purchasing and uniform distribution" are imminent.This article is about how to apply the above theories and technologies to construct the new mode, which is to reduce the cost and ensure the supply. By means of the study of theory and practice, the article points out that the establishment of logistics distribution center of Stone Machinery’s own is the most effective way to solve the above problems.Firstly, this article searches for the firm data closely and extensively, and according to the demand--value method (be united with (1, L) stochastic storage strategy model)、 distance--value method, the model based on capacitated facility location problem, the location of logistics distribution center is analyzed quantitatively based on the Stone Machinery’s existing production layout, preliminarily getting some alternative addresses; Secondly, through applying the mathematical model on the level analysis (also called AHP method), in full consideration of actual conditions of Stone Machinery’s production management, we finally obtains the best alternative through comparing the pros and cons of each alternative in accordance with the established evaluation criteria; Finally, this article analyzes possible problems the schedule produces, and puts forward some corresponding recommendations on the improvement.