An Uncertain Programming Model for Competitive Logistics Distribution Center Location Problem

Bingyu Lan¹, Jin Peng², Lin Chen³

¹College of Mathematics and Sciences, Shanghai Normal University, Shanghai, China.
²Institute of Uncertain Systems, Huanggang Normal University, Hubei, China.
³Institute of Systems Engineering, Tianjin University, Tianjin, China.

DOI: 10.4236/ajor.2015.56042                

Abstract

We employ uncertain programming to investigate the competitive logistics distribution center location problem in uncertain environment, in which the demands of customers and the setup costs of new distribution centers are uncertain variables. This research was studied with the assumption that customers patronize the nearest distribution center to satisfy their full demands. Within the framework of uncertainty theory, we construct the expected value model to maximize the expected profit of the new distribution center. In order to seek for the optimal solution, this model can be transformed into its deterministic form by taking advantage of the operational law of uncertain variables. Then we can use mathematical software to obtain the optimal location. In addition, a numerical example is presented to illustrate the effectiveness of the presented model.

Keywords

Competitive Location, Logistics Distribution Center, Uncertain Programming, Uncertainty Theory

Conflicts of Interest

The authors declare no conflicts of interest.

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