Research On Location Model Of Third-party Logistics Distribution Center

Logistics is a hot topic in current market economy, and is regarded as a source of profitsby sellers. Consequently, some businesses of third-party logistics are created. Distributedcenter is a bridge connecting the suppliers and demander. The location of distribution centerplays an important impact both on the economic benefits of the logistics and on the role ofimproving logistics system. With the rapid development of economy and the rising logisticsdemands, the selection of third-party logistics distribution center location is urgently solvedfor the economic efficiency of third-party logistics with the business improving and thelogistics cost reducing.This article studies the problem of third-party logistics distribution center location in thebackground, purpose, meaning, as well as domestic and international situation, discusses theaspects of factors which affects the distribution center location problem, principles.Excellent contrasting to common methods of siting the disadvantage, then we select theheuristic algorithm. Analyzing the role of third-party logistics distribution center in thelogistics supply chain, Bi-level programming model is designed for distribution centerlocation. For the real location problem, the demand for logistics is difficult to get an accuratevalue, the paper uses the principle of fuzzy math, fuzzy triangular fuzzy numbers tocustomer’s demands. Bi-level programming is a kind of multi-objective programming, it hasstrong application value in real life and be able to express distribution centers in the supplychain relationship, not only considers the core interests of third-party logistics decisionmakers, but also gives full consideration to the core interests of distribution center to dealwith the contradiction of distribution center and customers. The theory of solving the bi-levelprogramming model, selects the numerical optimization method are also discussed in thispaper. In the selection of intelligent algorithms, with comparing of the advantages anddisadvantages of common intelligence algorithm, the genetic algorithm has the advantages ofrobust, not controlled by the function characteristic, so we choose genetic algorithm designmethod in this paper, and design the method to solve the bi-level programming model basedon genetic algorithm.By analyzing characteristics of the third-party logistics distribution center location, wedesign a bi-level programming model for third-party logistics distribution center under fuzzydemand，using the principle of fuzzy mathematics to process model clearly，and design asolution method to solve bi-level programming model based on genetic algorithms，verify thevalidity of the model and algorithm through an example，and provide some references for thesitting of third-party logistics distribution center.