Research On Location Problem Of Distribution Center Based On Supply Chain

Over the years, distribution is a form of better service about creates wealth in the logistics industry, it has developing rapidly in China in recent years. To the achievement of the entire logistics system, distribution is of great significance, so improving the efficiency of distribution systems is an important part of improving the efficiency of logistic systems.But as a whole, most of the logistics system, there is a disconnection between the business and logistic. For example, in business flow activity, there is not a highly efficient logistics and distribution system to provide low-cost commodity circulation, timely, appropriate services. Solving the real problem, and improving the quality of service logistics system, so finally the development of the logistics of the whole of human society have an enormous role in promoting progress and development, then there bound to be a long process of development.In view of the above problems in the current economic situation, for the development of the entire distribution system and the logistics system development can not adapt each other, we should solve the logistics system in good operating within a certain scope first , doing well with the basic work. As a key component of the supply chain, distribution center connecting the two sides of supply-side and demand-side. It determines the efficiency of the supply chain and circulation costs in supply chain. In regard of substantial reducing the loss and improving services of the supply chain, distribution center is better than other members of the supply chain unit. So research on the distribution center is of great economic significance and practical significance, and the logistics distribution center location decision is a very important issue in the logistics distribution center construction project planning.This paper studies the issue of the distribution center site from the supply chain perspective. First,the Paper introduces the basic concepts of supply chain and supply chain management. Distribution Management is one of the basic strategies of supply chain management. Distribution links in the circulation of Supply chain means a series of links that hands until to the ultimate customer from manufacturers, wholesalers, distributors, Retailers after products is manufactured. The value of products is much higher than the value of raw materials and accessories, so, in the circulation, any redundant storage, time of the delay, the mismatch between supply and dealers will bring additional costs to all members of the chain. Therefore, the longer the chain links in the circulation of products is, the larger the impact of products at the end of the market competitiveness. On this basis, this paper introduced the concept of delivery and distribution center, described the role of the distribution center: It will help enterprises to reduce the costs in the sales links of the logistics industry; help enterprises to conduct e-business; enhancing the quality of services and to expand the market share of products, then induce the meaning and purpose of this study. Thereafter, on the basis of the impact factors and the principles of the distribution center site selection, the paper introduces the methods of distribution center site selection. Out of this paper, it only focus on center of gravity method and the Analytic Hierarchy Process, and two-phase method based on the above two methods. (Two-phase method eliminates the one-sidedness consideration of the center of gravity method, and provides suitable standby projects for the Analytic Hierarchy Process. And the actual location has been a good application, so it provides an effective method for distribution center site selection.) Finally, the paper uses the methods introduced above and MATLAB software doing actually analyze and study on the problem of distribution center site selection based on the analysis about the vendors'material of FAW Car Co.,Ltd. Then it elicits the best location to the distribution centers of the vendors.This paper draws the following conclusions:(1) The competition among enterprises has become a competition among supply chain, distribution center as a link in the supply chain, we should consider the problem of location from the perspective of the supply chain;(2) Distribution center is different from the warehouse, which bears a more complex function, set a logistics, business flow, information flow, value flow in one, and realizes the value of time and space for value-added functional entities;(3) Papers analyze the distribution center on the role and contribution of the supply chain detailed. It elicit that distribution center is the linchpin of reducing the costs and enhancing the competitive edge of the supply chain. Site from the point of view of the supply chain is one of the characteristics of this paper.