Location optimization of a competitive distribution center for urban cold chain logistics in terms of low-carbon emissions

Abstract

Owing to the fast economic and social development in Wuhan, the demand for cold chain logistics is increasing rapidly. Currently, the scale of the existing distribution centers cannot fully meet this demand, so building new ones would seem necessary. Research rarely considers consumer choice from the perspective of competition between new and existing cold chain distribution centers, and the low-carbon concept is rarely considered when a competitive site is selected. This paper therefore puts forward a model to assist the decision-making process regarding the choice of location where cold chain logistics facilities might be sited. Based on a bi-level programming method, this model is constructed where the upper level of government aims to determine an optimal location and scale for a cold chain distribution center as well as a rational trading policy regarding carbon emissions to minimize the total social cost of the whole logistics system. The lower level adopts the demand user equilibrium model, which considers the demands of logistics users when choosing between new and existing cold chain distribution centers, so as to minimize the cost incurred by each logistics user. We use the cloud particle swarm optimization algorithm to solve the model and decide a suitable location for a new center in Wuhan, the principal city in the Hubei Province, in China. The study reveals that: (1) The high demand is equivalent to the high number of new distribution centers; (2) The high attractiveness of these centers is equal to their high total scale; (3) Changes in carbon emissions trading prices have an impact on the scale, total carbon emissions, and total social cost of new cold chain distribution centers; (4) The carbon emissions quota policy has an impact on the scale of the location chosen for a new cold chain distribution center, total carbon emissions, and total social costs. This article provides a scientific basis regarding decisions concerning the location of new cold chain distribution centers by the government, and provides some ideas for energy conservation improvement and carbon emissions reduction by the whole society.