A study of distribution center location and transport routes optimization based on supply chain

In order to minimize the total cost of investment and transportation, the paper researches the logistics system (vendor —Distribution Center —retailer) from the perspective of supply chain optimization. The multiple suppliers supply goods to the multiple distribution centers, and the multiple distribution centers downstream supply goods to the multiple retailers. The paper establishes the bi-level programming model of distribution center location and transportation routes. The top programming model determines the best solution of the distribution center location from decision-making department of the enterprise in order to minimize cost. The lower programming determines the best transportation routes from the distribution centers to the retailers, which can make the transportation cost minimal. The paper solves the bi-level programming model by the genetic algorithm. Finally, the paper can draw a conclusion through the example analysis that the model and the computational method are feasible.