Abstract
We employ uncertain programming to investigate the competitive logistics distribution center location problem in uncertain environment, in which the demands of customers and the setup costs of new distribution centers are uncertain variables. This research was studied with the assumption that customers patronize the nearest distribution center to satisfy their full demands. Within the framework of uncertainty theory, we construct the expected value model to maximize the expected profit of the new distribution center. In order to seek for the optimal solution, this model can be transformed into its deterministic form by taking advantage of the operational law of uncertain variables. Then we can use mathematical software to obtain the optimal location. In addition, a numerical example is presented to illustrate the effectiveness of the presented model.
Highlights
Research on distribution center location problem is a necessary component of the optimization of logistics distribution’s system
The briefly explain of the competitive location problem is that some facilities have been located in the market and the new facility will be located at the optimal place so as to compete with others for their market share
We investigate the competitive logistics distribution center location problem under uncertain environment instead of logistics distribution center location problem in uncertain environment
Summary
Research on distribution center location problem is a necessary component of the optimization of logistics distribution’s system. (2015) An Uncertain Programming Model for Competitive Logistics Distribution Center Location Problem. Wong and Yang [7], and Yang and Wong [8] proposed a continuous equilibrium model, respectively These models solved the competitive location problem with different assumptions of customer demands. Sometimes the lack of history data posed difficulties for applying probability theory, especially when a new product was shipped to the customer by distribution center. Wu and Peng [27] presented an uncertain chance-constrained model to deal with logistics distribution center location problem under uncertain environment. This paper addresses the problem that a logistics company enters a market by locating a new distribution center where there are many existing competitors in uncertain environment.
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