Mathematical Model and A Solution Method of the Establishment of Logistics Centres

Abstract

In this article, I will give an integer non-linear programming model of the first phase of the three-phase method. The objective function of this model has got an indefinite quadratic form. This problem has not got any exact algorithm. But the variables of the model are special, as these are integer variables, and their values are 0 or 1. If we substitute these variables with new special variables, and change some conditions, the new model will be linear integer programming model. The components of the original objective function are rational numbers (these components are cost components), so it can give a new objective function with integer coefficients. The optimum of this new function will correspond with the original objective function. The new model with the new objective function has got an exact solving method this time.