A Level of Service Based Planning Model for Distribution Network Design

In the traditional design of distribution network, designers often consider cost or profit as the objective. However, this is no longer adequate since quality of service becomes more important because of the improvement of people's living standard. Therefore, this paper first analyzes the division of distribution network. Based on the customers' requirement, the paper evaluates alternative link and nod in the distribution network from the perspective of customer demand using fuzzy-logic based comprehensive evaluation. The resulting method analyzes the level of service of every enterprise for alternatives in the distribution network. This paper establishes a mathematical model for the supply chain's distribution network with two goals: minimizing cost and maximizing level of service. The paper presents a solution to this multi-objective problem.