Optimization of Distribution Network with the Constraints of Distribution Radius

A new extended distribution network model was developed with the aim to minimize the total cost of logistics process from the beginning of supplier, through distribution center, to the end of customer. For the sake of the efficiency of distribution, an assumption that the distribution zone of each distribution center is restricted was specially considered. The optimum locations and numbers of logistics nodes in distribution network such as suppliers and distribution centers were determined. The most economical demand allocation can be further known. The dependence between the total cost and the distribution radius was quantitatively discussed. It can be found that the proper increase of distribution radius can effectively decrease total cost. Model application and insights are detailed through numerical illustrations. It is verified that the model is very contributive to the design of distribution network in supply chain.