A Dynamic Method of Distribution Center Locating

In view of the disadvantage of present locating method to distribution centers, the drawbacks of the static model location method is analyzed in detail. The initial conclusion is drawn by single-facility locating method - center-of-gravity method (CGM) as the location for static. Combining with the dynamic programming (DP) method, the dynamic optimal distribution center location - relocating layout is then found through calculating and adjusting the demand based on the profit forecast. The advantage of this combination method is to achieve the maximization of cumulative present value of total profit in scheduled time by relocating alternative sites. Finally, the superiority of the method is verified through the specific case.