Research And Application On Location Of Steel Distribution Logistics Center

Steel industry is a pillar of national economy, which is one of the importantindicators measuring national industrialization level. However, the problems ofovercapacity, irrational product structure, high costs, internal disorderly competition,serious price-war and unreasonable layout are continuously emerging in current steelindustry. China’s steel industry has been in the state of high-cost and low-profitoperating. Obviously, the most affected in steel industry are steel enterprises.In order to survive, a steel enterprise needs to reduce cost and increase efficiency,so cutting down logistics cost of steel sales is a good point to enter. The node layout ofsteel logistics and building the network of steel sales logistics are favorable measures toreduce sales logistics costs, shorten circulation process, improve the level of customerservice, reduce inventory of finished products, stabilize market price, and shift the steellogistics from cost center to profit center. While the current research on steel saleslogistics focuses on sales logistics management, mode, information and so on,literatures about quantitative logistics node location and network construction are few.Therefore, conducting research on steel sales logistics node has significant practicalguidance and theoretical value.Firstly, the related theories of logistics, steel logistics, logistics node and logisticsnode in steel sales are elaborate, so as to lay a solid foundation for follow-up studies.Apart from that, site selection principles and influence factors of steel sales logistics areanalyzed to provide references for putting forward ideas about logistics node.Secondly, a "two-stage" site selection method is proposed aiming at the problem ofsteel sales logistics node location. First, the comprehensive strength of alternative pointswhich could be set up for steel logistics network nodes is evaluated, and correspondingevaluation index system was constructed in the evaluation process. Evaluation modelbased on rough sets is constructed combining with the evaluation system and get theevaluation value of each alternative point, as the basis of primary alternative points.Then, programming model with goal of lowest cost and maximize customer servicelevel is constructed on the basis of the primary, and corresponding calculation processfor model is set up. Finally it is solved by the LINGO software, and gets the result ofthe final position and count of sales logistic network nodes, transportation route andcorresponding carryings of different types of finished products from the factory to the logistics nodes, and from the logistics node to customers.Finally, the actual data collected from J Steel’s steel sales and data from thestatistical yearbooks and querying the database as known quantity are put into theconstructed location model, so as to test the model’s practicality.