Abstract
Location selection of distribution center is one of the most complicated problems in modern business operations; hence many mathematical algorithms were developed. The subject investigated is the regional E-supermarket with JIT distribution pattern in ring-like area, this paper proposes a two-stage model to solve its location selection problem while minimizing the number of distribution centers and total operation costs. The Set Covering Problem (SCP) model and the integer programming algorithm are utilized in the first and second stage separately. Numerical example of Beijing is given to verify validity of this model.
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