The site selection of distribution center based on linear programming transportation method

The distribution center has a tight with the supply point and demand point which are significant in logistics system. A better site selection of distribution center has an important impact on the improvement of logistics economy benefit. This paper analyzes the common site selection methods of distribution center, such as Kuehn-Hamburger Model, Cluster Algorithm, Analytic Hierarchy Process, and Genetic Algorithm. It uses linear programming transportation method to select site through the research and comparison of site selection method of distribution center. The paper introduces the site selection steps of linear programming transportation method. Based on the construction of logistics network schema of linear programming transportation method, it takes into account the factors such as relation between supply and demand, freight rates, transportation distance and the expense of the distribution center. It analyzes and solves by using linear programming transportation method and ultimately assume the proposal of site selection of distribution center. This proposal has a widespread value of popularization and practice.