Logistics Network Design Problem with Information Sharing Strategy

This paper studies the information sharing effects on the logistics center location problem, which is described by a bi-level programming model. The upper level is to determine the optimal sites of logistics centers to make the total cost (fixed and variable cost) minimum, in the range of fixed investment formulated by decision makers. The lower represents customers demand assignments among different logistics centers with different information sharing levels. Chaotic optimization algorithm (COA) is applied to solve the model. A simple example is given to illustrate the applications of the model and its algorithm.