Study on Distribution Center Locating Using the Combination Method of CGM and DP

Firstly the distribution centers locating and its study progress are introduced, and then drawbacks of the static model locating method are discussed and summarized. The initial conclusion is drawn from single-facility locating method-center-of-gravity method (CGM) as the static model locating method. Combining with the dynamic programming (DP) method, the dynamic optimal distribution center locating is then found through calculating and adjusting the demand based on the forecasted profit. The advantage of this combination method is to maximize the cumulative current value of total profit in scheduled time by relocating to other alternative sites. Finally, this combination of algorithm method is applied to analyze one specific case.