Research On Location Of Cold Chain Distribution Center Considering Three-layer Damage Cost

With the improvement of living standards, consumer demand for cold chain goods, such as fruits, vegetables, meat, aquatic products and frozen foods, increased rapidly in recent years. Due to perishability of cold chain goods, temperature should be strictly controlled in the transport process in order to ensure their quality. So improving cold chain logistics is important. Government realized the importance of the problem and has been promoting the development of the cold chain industry through macroeconomic regulation and cold chain industry policy. Under this background, cold chain logistics is developing rapidly. However, due to the lack of pre-planning, infrastructure is weak, resulting in our existing logistics and cold chain logistics network confusion, cold chain circulation rates and low, serious waste of resources and higher logistics costs and other issues. Establishment of an integrated cold chain logistics system is now becoming the key to solving the problem of cold chain development, planning chain logistics distribution center hub of this network becomes very important.To solve the problem of cold chain logistics distribution center location, the paper analyzes the factors affecting the location problem and calculates the three-layer damage cost within the cold chain logistics distribution system, cold chain logistics distribution center operating cost, transportation and distribution costs and customer time-satisfaction degree. The interests of the logistics planning department and the clients are taken into account with bi-level programming. The location model of the bi-level programming is builded. The paper proposes a heuristic algorithm. A numerical example is also presented and shows the validity and feasibility of the method.