Supply Chain Distribution Network -- Optimized Design Model and Its Solution Based on Time Constraints

To strengthen management of supply chain and increase its efficiency, how to step up the research on supply chain distribution network system has become a major topic on logistics. As traditional logistics can no longer suit the requirements for great circulation due to a waste of resources, it is necessary for us to establish distribution systems with network structure, which are composed of some nodes and lines, whose activities serve as a foundation of supply chain distribution system activity. Whether network design is sound or not will play a decisive role in the rationalization of the whole distribution system and social benefits from circulation of materials. Meanwhile it is also an issue of business investment decision of strategic significance. This paper attempts to make an approach to network optimization of the distribution system with multi-source and multi-product. while in the place of demand only small distribution outlets are set up, each of which will no longer establish and manage its own warehouse. Instead, more energy will be concentrated on trading of goods with only one DC attending to supply. After overall consideration of such factors as inventory costs and distribution time, a time-constrained location model for distribution system with multi-source and multi-product is developed with a nonlinear programming approach and an optimum solution to the model with different constraint conditions is found using LINGO software in Microsoft Office. In this way the problems of quantity, location, scale and quantity of distributed products in the distribution center with network structure are solved preliminarily, thereby increasing the efficiency of supply chain.