Research on a Distribution Center Location Model Based on a Particle Swarm Optimization Algorithm

Logistics is supposed to be the important source of profits for the enterprises besides reducing material consumption and improving labor productivity.Transportation costs,distribution center construction costs,ordering costs,safe inventory costs and inventory holding costs are the important parts of the total logistics costs.In this paper,based on the research results of LMRP(location model of risk pooling) location with fixed construction cost,the LMRPVCC(location model of risk pooling based on variable construction cost) will be introduced.Applying particle swarm optimization to several computational instances,the authors find the suboptimum solution of the model.