Applied Research On Facility Location Selection Of Logistics Distribution Network For R Pharmaceutical Company

In recent years, with the aging of the population and enhancement of social security system and inhabitant purchasing power, China’s pharmaceutical market is growing rapidly. In the changing and competitive circumstances, pharmaceutical companies shorten delivery time and reduce cost to improve customer service experience, which raise more requirements on the pharmaceutical logistics distribution network. Taking R pharmaceutical company as study target, this paper does applied research on company’s logistics distribution network facility location selection, to support the company’s business growth in next five years, minimizing the logistics direct cost while keeping high level of customer service.In this paper, firstly conduct a comprehensive analysis on requirements of R pharmaceutical company’s distribution network, understand company’s business and distribution channel strategy, assess current logistics distribution network setup and performance, identify the issues and challenges and define the way to solve it. Secondly, define the appropriate logistics distribution network layer based on R pharmaceutical company’s future requirements. Qualitative and quantitative method is applied in logistic facility location selection. Fuzzy comprehensive evaluation method is used to initiatively filter facility location, then set improved p-median model and simulate different scenarios by excel to get the optimized logistics distribution network solution. Finally, define the roadmap to implement the optimized logistics distribution network, when to open three RDCs and operation model of these RDCs; and set tasks in different implementation phases and define the expected benefits R pharmaceutical company will have when implementation finished.