JOURNAL OF SOFTWARE, VOL. 7, NO. 8, AUGUST 2012 1799 Study on Logistics Center Site Selection of Jilin Province Xiaohui Liu College of Traffic and Building Engineering Beihua University China [email protected] Xiaohui Guo* and Xueyu Zhao Logistics Management Department Dalian Maritime University Dalian China; School of Education and Human Development University of Colorado, Denver 1250, U.S. [email protected], [email protected] Abstract—Based on the introduction of the concepts of location solution can effectively save money, promote logistics and logistics center, this paper analyzed the status production and consumption of coordination and and problems of Jilin Province’s logistics center, and cooperation to ensure the balanced development of the proposed the steps, principles and factors for site selection logistics system. Therefore, a reasonable distribution of logistics center. Then by listing and comparing nine kinds center location is very important. And once selected, it of logistics center site selection method, including Analytic will be a long operation, which is not only related to Hierarchy Process, Cluster Algorithm, Genetic Algorithm, operating costs but also directly related to the level of Weight Grade Method, P-Median Method, System [1] Simulation Method, Fuzzy quality function method, logistics efficiency . Dijkstra Method, we chose the best site selection method, The logistics center of Jilin province is a magnificent namely the center of gravity method. Finally, this paper logistics infrastructure, which has a big impact on social found out the exact logistics center location of Jilin Province economy. Reasonable site selection of logistics center can with the center of gravity method. save costs effectively and guarantee the balance development of logistics system as well as reduce traffic Index Terms—center of gravity method, logistics, logistics congestions that appeared in many cities, so as to reduce center, principles, site selection, steps the pollution to the environment. Thus, it will definitely promote the sustainable development of Jilin province. I. INTRODUCTION With the acceleration of the planning for logistics center Logistics center occupies an important position in the in Jilin Province, a reasonable plan for the site selection logistics system, which plays a linking role. The upstream of logistics center is an important topic. of logistics are the supply factories, and downstream are users. Modern logistics center plays an important part in the circulation community, and it is the support of the II. OVERVIEW OF LOGISTICS CENTER IN JILIN PROVINCE entire logistics network, which can not only optimize the logistics networks, but also link, coordinate, the logistics A. Logistics and Logistics Center infrastructure of the whole society. The transit and Originally, logistics is a military term, first used in the distribution function of modern logistics center can Napoleonic era, which was defined as” the art of moving enlarge the functions of logistics infrastructure, and armies and keeping them supplied”. The term has become effectively reduce logistics costs, improve the logistics popular since the Gulf War of 1991; particularly since the situation, so as to improve logistics efficiency. In a sense, publication in November, 1992 of an interview with the lack of modern logistics center will inevitably lead to William Pagonis, the general who had been in charge of the waste of resources of regional infrastructure and other logistics in that war. William Pagonis defines it as: circulation elements. In other words, if the modern “the integration of transportation, supply, warehousing, logistics center is not perfect, the infrastructure function maintenance, procurement, contracting and automation will be seriously affected. into a single function that ensures no sub optimization in Site selection of logistics center means that in the any of those areas, to allow the overall accomplishment economic areas where contain a number of supply points of a particular strategy, objective, or mission.” and demand points, choosing a good place to set up a Later, in business field, a commonly used definition logistics center planning process. Better logistics center for logistics was given by the Council for Logistics Management (SCM): “Logistics is that part of the supply chain process that Foundation item: planning item of technology development for Jilin plans, implements, and controls the efficient, effective city：201042307 Corresponding author, Guo Xiaohui forward and reverses flow and storage of goods, service, and related information between the point of origin and © 2012 ACADEMY PUBLISHER doi:10.4304/jsw.7.8.1799-1806 1800 JOURNAL OF SOFTWARE, VOL. 7, NO. 8, AUGUST 2012 the point of consumption in order to meet customers’ indicator of measuring the overall competitiveness of a requirements.” country or a region. Currently, Jilin province is in an So far, many definitions of logistics have been important period of entering the building a moderately proposed. But a widely used definition of logistics is that: prosperous society and accelerating socialist Logistics is the process of strategically managing the modernization, therefore, accelerating the development of procurement, movement and storage of materials, parts modern logistics industry and building the logistics and finished inventory (and the related information flows) industry of Jilin province that in line with trends of through the organization and its marketing channels in modern logistics development are of great significance to such a way that current and future profitability are adjust and optimize industrial structure, enhance the maximized through the cost-effective fulfillment of overall competitive strength and improve the level of orders. economic development of Jilin province. When the products are moved from the suppliers to C. Problems of Logistics Center in Jilin Province users, we need a central location for a series of logistics management, or centralized or distributed, or storage, or Jilin Province has started the construction of logistics flow, or the packaging or handling, the place is what we centers and showed the trend of rapid and potential call the logistics center. development in some areas and regions. Its development The definition of logistics center can be described like conditions are gradually taking shape, with a regional this: it is a workplace or an organization that deals with logistics center in northeast good foundation, but still in logistics activities, and it should meet the following the early stages of development. Because logistics requirements: a, mainly sever for the whole society; b, the demand is limited, not yet formed a relatively complete logistics functions are sufficient; c, the information system, compared with the requirements of modern networks are perfect; d, the radiation ranges are wide; e, logistics industry, there is still a big gap. Main questions [3] the variety is small and the batch is big; f, the capacity of are as follows . storage is high; g, all the logistics activities are operated ⑴ A poor sense of modern logistics, decentralized together. The site selection of logistics center is to choose logistics management system, lack of overall planning a location in an economic area that contains several Currently, the industrial policy and industrial planning supply points and demand points [2]. that are required for the development of modern logistics industry of Jilin Province has not been introduced. There B. The Status of the Logistics Center in Jilin Province are no uniform laws and regulations to follow in the Logistics has become an important international logistics competition market. Besides, the modern economic system component. Modern logistics is a logistics concept is so weak that some companies do not product of economic globalization. Economic get rid of the planned economy and they are accustomed globalization is an important service. In recent years, the to "large", "small", they did not follow the concept of modern logistics industry showed steady growth, Europe, modern logistics, internal logistics integration and the United States, Japan has become the worldwide restructuring, or the implementation of outsourcing. The important logistics base. China's logistics industry started degree of specialization is low, and distribution costs late, with the rapid development of the national economy, account for the high proportion of production costs. Most the market demand for the logistics industry continues to companies are still focused on road transport, water expand. In the 21st century, the country continue to transport, and wholesale, retail and other traditional strengthen and improve macro-control policies, China's logistics industry. Whereas a few companies operate logistics industry to maintain rapid growth, continuous modern e-commerce, logistics and distribution, large improvement of logistics systems, the industry has supermarket chains, and the technology level is low, and become more sophisticated and standardized operation. lack of modern management tools. As the socialist market economic system of continuous ⑵Inadequate environment of logistics industry, improvement, China's logistics industry has made difficult operating of logistics corporations significant infrastructure development, logistics, have Logistics enterprises mostly come from the traditional been expanding, business concepts, and operating mode transport and warehousing