Application of AHP and Steiner tree problem in the location-selection of logistics´ distribution center

Logistics distribution center´s location-selection refers to that in an economic region consisting of a number of demand points and a number of alternative points, one or more addresses are screened out from a number of alternative points to set up distribution centers in the planning process. Hereon, in order to conquer the shortage of the traditional location-selection methods, this paper proposes two location-selections to make the locations selected at last more precise and more suitable for constructing distribution centers. The first location-selection is the alternative points´ location-selection, which is solved by AHP; the second is the distribution centers´ loaction-selection, which is solved by Steiner tree problem, and this paper gives Steiner tree problem´s improved algorithm based on Multi-Agent System. Finally, location problem for distribution center in E-commerce environment is analysed and carried out based on this model, and some tests are made to prove the feasibility of this model.