Bi-level programming model and solution algorithm for the layout of terminals of city distribution

Abstract:

Based on the surveys and analysis of terminals of city distribution in Shanghai, a bi-level programming model for a kind of terminals of city distribution is created. In terms of planners, the upper level of the bi-level programming model optimizes the whole system; In terms of customers, while the lower level optimizes the customer systerm by considering the distance of terminal to customers, the price and quality of the service of terminals. Then, through reaction function, a heuristic algorithm is designed. Finally, it is proved by a practical example of Xujiahui that the model and algorithm to solve the layout problem of terminals of city distribution is reasonably feasible.