Abstract

Internet is changing customers’ consumption patterns and the manufactures’ sale model. With the development of the computer network technology and the electronic commerce, more and more firms establish the electronic sale channel and get great profits. The huge supply chain network is established through the new idea and the technology. In this paper, we propose an improved local search algorithm- clustering local search algorithm (CLSA) to solve the hybrid location problem. We apply this method to distribution center location model and get the optimal solution. Result shows that this method can avoid the exponential explosion and get a good solution. In numerical analysis, we compare this method with simulated annealing method and ant searching algorithm. The numerical analysis demonstrates that this CLSA method not only classifies simply and flexibly, but also has the characteristic of fast search speed and small search space.

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