Research On Facility Location Of Logistics Centers For Company G

Company G is a B2B e-commerce trading platform for sugar,which is the largest sugar wholesale market in China.It provides all supporting services including information consulting,business,settlement and distribution for sugar manufacturers,dealers and customers mainly through e-commerce platform and modern logistics construction.Currently,most warehouses of company G are located in sugar origin(i.e.Guangxi,Yunnan and Guangdong Province),while few warehouses can be seen in sugar demands which are all over the country.The current logistics network layout,showing"preference the origin to the demand" situation,leads to some problems which are the mismatch between supply and demand,regional mismatch,logistics costs is high,warehouse is idle and waste.In this context,the layout of company G’s logistics network and the location of the new secondary logistics centers in demands needs to be studied to solve the current problems G company is facing.Consequently,based on the forecast of sugar demand,sugar will be pre-allocated(pre-distributed)from the headquarters(primary logistics center)to the secondary logistics centers to satisfy the demand of sugar,optimize the existing logistics network and improve the distribution system.Firstly,the paper analyzes the present situation of company G’s business and logistics and makes the existing problems clear.Consequently,the causes of problems are proposed which lies in the irrationality of the existing logistics network.Regarding the analysis above,this paper proposes the solution that new logistics centers needs to be established.Secondly,comparing with different location methods and considering the reality of company G,the mixed integer programming model is determined.Thirdly,based on sugar forecast of all country,18 social public warehouses were chosen as alternative logistics centers.Then,with the goal of the lowest sum costs of shipping costs,warehouse costs and loading and unloading costs,the constraint condition is established to meet needs of customers.Lingo software is used in this paper to get the solution,and the different minimum total logistics costs are obtained corresponding to different number of logistics centers.Finally,the optimal distribution program is determined by the lowest total cost of logistics through analysis and comparison.In addition,the periodic law of sugar are considered on the basis of the optimal distribution scheme to provide rational location scheme of logistics centers for company G and solve the existing problems in the layout of the logistics centers.