Decision Making Before the Location Model of Distribution Center

Abstract

Appropriate locations for distribution centers benefit both distribution centers and their clients. Many location models of distribution centers base on the assumption that the companies that the distribution center serves are known. Few literatures touch on the issue that if the right companies have been found as the service objects for the distribution center. This paper believes the better way is to find the right service clients first, and then, build location model based on it. And this paper focuses on the identification of the service clients and other decisions can be made based on the identification result. In order to find the right clients for distribution centers a network which can reflects the transport relationships among companies is created first. Then the companies that should share logistics service are identified through community detection method. The companies belonging to a same community of the network may become the right service clients for a distribution center.