Study On Location Problem For Zara China Distribution Center

With the rapid economic development in recent years, the market of apparelretailing is segmenting, there has been a new subdivision in this market whichfeatures "fast", its most typical idea is the fastest speed of the latest designconcepts for sale to customers, ZARA is one typical representative of this newsubdivision.As one of the world’s largest fashion retailer, ZARA has more than5,000stores in78countries worldwide. ZARA involved in the history of China businessfor about seven years, now has its own business in53China cities, along withsuch rapid development, the setup of the distribution centers in China is nowincreasingly necessary.This paper introduced the business mode of ZARA and described ZARArequirements for distribution center location, and combines with the actual needsof ZARA, improves based on the standard P-median location problem model,takes into account the coexistence of different transportation methods, establishesan improved P-median model which is tailor-made for ZARA. For the purpose ofsolving this model, this paper applies greedy dropping heuristic algorithm, usesVBA program, and finds a proper solution for ZARA distribution center.