A Two-Stage Model with an Improved Clustering Algorithm for a Distribution Center Location Problem under Uncertainty

Jun Wu, Xin Liu, Yuanyuan Li, Liping Yang, Wenyan Yuan and Yile Ba
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Jun Wu: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Xin Liu: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Yuanyuan Li: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Liping Yang: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Wenyan Yuan: School of Mathematics and Physics, Beijing University of Chemical Technology, Beijing 100029, China
Yile Ba: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China

Mathematics, 2022, vol. 10, issue 14, 1-17

Abstract: Distribution centers are quite important for logistics. In order to save costs, reduce energy consumption and deal with increasingly uncertain demand, it is necessary for distribution centers to select the location strategically. In this paper, a two-stage model based on an improved clustering algorithm and the center-of-gravity method is proposed to deal with the multi-facility location problem arising from a real-world case. First, a distance function used in clustering is redefined to include both the spatial indicator and the socio-economic indicator. Then, an improved clustering algorithm is used to determine the optimal number of distribution centers needed and the coverage of each center. Third, the center-of-gravity method is used to determine the final location of each center. Finally, the improved method is compared with the traditional clustering method by testing data from 12 cities in Inner Mongolia Autonomous Region in China. The comparison result proves the proposed method’s effectiveness.

Keywords: multi-facility location problem; clustering algorithm; center-of-gravity method (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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