| Distribution center is a very important point in supply chain. The location ofdistribution center will directly affect logistics cost and service level and is verysignificant for distribution network and the whole logistics system. So a scientific andsuitable location could save management cost for the company and could provide highquality and efficiency logistics service for customers. It is practical.The Thesis is based on a case of a UAE chemical company setting distribution centerin North of China. The sales history of North China market was analyzed and the trendfunction was calculated separately according to the characteristics of each city historicalsales changes, so as to obtain the demand forecast. Meanwhile, based on current logisticsfreight quotation, the freight forecast was analyzed.Based on the demand and freight forecast, without fixed cost, only considering thetransportation cost, using the mathematical formula of gravity model and EXCEL tocalculate the corresponding transportation costs. Comparing the total cost for the next fiveyears to obtain the optimal location selection.Moreover, on the premise of not affect customer satisfaction and not consideringtransit time, the logistics cost of multi transportation model (including by truck, by trainand by vessel) was calculated as well. It validated the result of best location and furtheroptimized the cost. Then the decision of location will be more close to actual requirement.Finally, the logistics cost from manufacture plant to the distribution center was alsointegrated and combined to further verified the conclusion is reasonable. |
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