The Research Of Distribution Center Location-inventory Joint Decision Model Based On VMI

Distribution center connected to the suppliers and customers in the supplychain,between them it plays an important role as a bridge.Therefore, the distributioncenter location has an important impact on to play the role of supply chain logisticsnetwork and to improve the economic benefits of the logistics network.VMI(Vendor Managed Inventory)is an important way to improve the efficiency ofthe supply chain,This paper expounded a comprehensive study on the status ofdomestic and international about distribution center location,analysis of the currentsituation siting based on inventory policy,Researched the effects of factors distributioncenter location,integrated decision-making facility location, product distribution andmulti-product inventory control policy.Thereby establishing a location-inventory jointdecision model based on VMI under a multi-product demand environment.The modelis to minimize the comprehensive siting costs,transportation costs and inventorycosts,Simultaneously under a certain level of service determine the distribution center’slocation,quantity,scope of services,and its inventory control parameters. The model is amixed integer programming problem,The article gives a genetic algorithm to solve theproblem. Programming and simulation to solve it on the VS2008platform.By anumerical example,The results turn out that the algorithm can effectively solve theproblem. Finally,at the different level of service conditions to solve the model,Theresults showed that the level of service also have some impact on the results of themodel sited.