A Study On The Layout Optimization Of Procter & Gamble Distribution Center

As an important part of modern logistics,distribution centers are very important for adjusting inventory and optimizing resources.It not only related to the competitive position and market share of the company, but also to the efficiency of the industry homeostasis and logistics systems,that the distribution center is operating efficiently or not. Therefore, optimizing the layout of the distribution center is very important to be carried out. It includes evaluating and selecting the best location from the known number of alternative process,optimizing the specific layout of the distribution center which refers to the natural environment, economic factors as to the basic conditions for the layout of the existing distribution center. In this process, we should propose specific measures for improvement to solve the problems identified,Our distribution centers,as known, are mostly in the internal research field, the ultimate goal of which is not to optimize the efficiency of the macro level but to maximize profits in the micro level. Even if it comes to the overall layout optimization problems, maybe using the multi-use plan to simulation the process, the calculation is too complicated and difficult to achieve the desired results. In this paper, a combination of qualitative and quantitative methods is used.It based on the analysis of the impact of the general layout of the distribution center factors and focuses on the development of P & G’s distribution center problems.And as a basis, using the analytic hierarchy process to calculate each indicator’s final weight. These include: the way to choose impacts of Procter & Gamble distribution centers and the analysis of indicators’ weight, model the optimization and calculate the research data of Procter & Gamble.We will get the index weight and analysis the final part of empirical. Because we can not analysis every P & G’s distribution center in China, at the same time accounting that economic factors are very important to the impact of distribution centers,and the first-tier cities based on economic divisions have outstanding characteristics, thus selecting Guangzhou,Shenzhen,Shanghai, Beijing,Tianjin five cities as a representative to survey and expert scoring.A combination of indicators is made to determine the specific distribution centers and a weighted average score in order to analyze the final result.The results show that Guangzhou ranked first, which is the most suitable city for the development of distribution centers. So it has its rationality that P & G chose to build the Asia’s largest distribution center in Guangzhou. Meanwhile Shanghai ranked second, which is also confirmed by Procter & Gamble,which recently decided to go north to establish the correctness of regional distribution centers.Because other cities have some problems,there is still much room for improvement. On this basis, the paper finally has made specific recommendations for improvement on P & G’s distribution center in other countries.