Optimization of Urban Distribution Centres: A Multi-Stage Dynamic Location Approach

Customer demand is dynamic and changeable; thus, optimality of the enterprise’s initial location cannot be guaranteed throughout planning period in order to minimize site selection cost maximize service reliability whole operation cycle. The enterprise divided into different stages, a static model established at fixed stage. In addition, multi-stage by introducing transfer between adjacent stages. To reduce difficulty solving model, first, we determined optimal allocation strategy for each Second, designed novel method that transforms problem shortest path graph theory. Finally, Dijkstra algorithm was used find sequence so its cumulative lowest period. Through case study China, compare costs locations under objectives. results show this generates more income (as it reduces cost) comparison previous location, objectives have substantial influence on results. At same time, findings indicate exploring from perspective could help operating resources sustainable development perspective.