The Application of a Consolidated Model in Logistics Planning

Abstract:

The consolidated distribution model (CM) which contains the most important characteristics of entropy gravity models was introduced to logistics distribution and an algorithm based on space 0.618 search was used to maximum likelihood parameters estimation. By compared the applications with the double constraints gravity model and CM, the parameters’ economic meaning is verified. The results of CM forecasting are always better than the double constraint gravity model and The CM is not sensible to the interior cost of logistics zone when the distance between zones is much bigger than the interior. It is turned out that CM is an effective and accommodative logistics distribution model.