Model for selecting location of logistics distribution center

Strategy of locating distribution centers with maximum utility and minimum cost was studied. The cost was categorized as transportation cost, variable cost, and fixed cost, and each of them was detailed categorized. Problem was reduced as a cost optimum model, which intended to figure out where to locate distributing centers with both maximum utility and minimum sum of transport cost, variable cost and fixed cost. Genetic algorithm with appropriate modification according to the reality was adopted to obtain the solutions of the model. The numerical experiment indicated the model was effective, efficient, and robust. The empirical experiment based on a real business case presented the satisfied solutions.