Optimization of logistics distribution network model based on random demand

Abstract

Since customers’ demand has randomness and uncertainty in logistics distribution network, it needs optimized dynamic distribution path for commodities. This paper studies optimization model of chain retailing enterprise in logistics distribution system which is constituted by one region distribution center, multiple urban distribution centers, and multiple retailing stores under random requirement. Retailing store location and independent decision model as well as corresponding joint decision model of logistics distribution network design are established. Solution methods of various independent decision models are provided. In addition, Lagrangian relaxation and coordination mechanism of sub-gradient algorithm-based coordination mechanisms are constructed to realize joint decision. Finally, effectiveness of joint decision model and coordination mechanism is proved by examples.