Supply Chain Channel Network Design And Optimization For D Medicall Device Company

Medical industry in China has experienced a high-speed development in recent years.China government pay more and more attention on monitoring this industry.With the deepening of health care reform,a variety of medical related laws and regulations have been introduced.“Two-Invoice Model” as a new policy for health care reform plays more and more important role in the reformation.This paper first introduces the current situation of medical related laws and regulations,the concept and background of “Two-Invoice Model”.Analyzing the influence on the medical industry from this “Two-Invoice Model”.Under the influence of this model and the future trend of health care reform,D medical device company determined to implement the reform in their supply chain.D company want to rebuild their distribution network to meet the new requirements from “Two-Invoice Model”.This paper studies some relevant theories of distribution center locating.Considering the actual situation and requirement from D company,this paper establishes a linear mixed 0-1 programming model to locate the proper distribution centers for D company.By using the actual data from D company,this paper solves the model by LINGO software.After analyzing and verifying the result from LINGO,distribution centers of D company are selected.All that have been done makes the best decision for D company to locate their new distribution centers and build up their logistic network.