Research On Distribution Center Location Problem Based On Bi-level Decision-making Mechanism

Facility location problem has been the focus of study in the field of supply chain, the introduction of bi-level programming promoted diversification of facility location problem. The relationship between the company and its external stakeholders is generally considered in bi-level programming model for facility location problem, the whole enterprise is considered as a basic decision making unit, ignoring the internal organic link between the decision-makers at all levels. Based on the analysis and summary of the status quo of bilevel programming problem of distribution center location, the distribution center location problem under the internal bi-level decision-making mechanism from a systemic angle is studied in this dissertation.In this paper, corporate decision-making system is abstracted as a bi-level decision-making structure constituted of upper decision-makers and lower decision-makers, objectives and constraints of both are analysed. Further, a bi-level programming model for distribution center location problem is established, in which the objective of the upper is minimizing the total cost and the lower’s objective is minimizing the cost of punishment due to exceeding the upper limit of delivery time. According to the characteristics of the model, combined with respective advantages of particle swarm optimization, genetic algorithm and immune algorithm, a hybrid particle swarm optimization–genetic algorithm and an immune genetic algorithm are used to solve the model.Finally, the practicality and effectiveness of the proposed model and the two hybrid algorithms are verified by a numerical example of a power grid company’s actual logistics network operational data.