Abstract
This paper studies the location of Wuhan steel logistics distribution center. First of all, according to Wuhan Iron and Steel Plant sales in Hunan Province and the relative position of the city, the transport costs are calculated from Wuhan Iron and Steel Plant to the demand point. We further analyze the necessity of establishing steel logistics distribution center, using the precise center of gravity to determine the actual location of the distribution center. After the establishment of distribution center, the total freight is reduced by 15.46 million yuan from Wuhan Iron and Steel Plant to each city in Hunan province via distribution center each year. The results of this paper can provide theoretical basis for the logistics node planning of related enterprises.
Highlights
Iron and steel industry is to support the basic industries of the national economy
This paper studies the location of Wuhan steel logistics distribution center
We further analyze the necessity of establishing steel logistics distribution center, using the precise center of gravity to determine the actual location of the distribution center
Summary
Iron and steel industry is to support the basic industries of the national economy. Iron and steel are related to people’s livelihood of the bulk of raw materials. With the rapid growth of China’s national economy, steel trade enterprises have developed, and the logistics scale is increasing [1]. Because the iron and steel enterprises always choose their own logistics and transportation enterprises to distribution or transportation, they are difficult to integrate logistics resources, and they can’t form a scale effect. Because of the iron and steel enterprises in the logistics process in the lack of planning, traffic flow is very uneven, and it is difficult to provide high-quality services [2]. Iron and steel enterprises in the logistics can’t achieve the integration of logistics functions and scattered energy, and can’t focus on core business, which reduce market competitiveness. The iron and steel enterprises with professional standard can reduce logistics costs, thereby enhancing market competitiveness
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