Model and Algorithm for Multi-commodity Logistics Network Design Considering Service Level Constraint

In the logistics network design, the decision-maker should not only select proper places to save commodities, but also determine the quantity of commodities saving in each place. This paper assumed the demands are stochastic and satisfy a normal distribution, and proposed a new optimization model which simultaneously described the inventory decision and the facility location decision. A combined algorithm based on the simulated annealing algorithm is used to solve and analysis the numerical example. Numerical application denotes the model and the algorithm operate rapidly and the results are rational, so it provides scientific guidance for the multi-commodity logistics network design problem.