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##### 物流工程与供应链管理Model 设计

1.最小化成本
Assume that all retails are in the situation of operation not close, the demand will fix by each retail.
1. Minimize the costs

YJ在配送中心是在J值为1；否则为0。

Cij means the costs from the Distribution center to retail
Xij means the demand from retail on Distribution Center, in this equation is only a fixed number.
fi means the fix cost on Shanghai or TaiHu
Yj means when distribution center is in J, the value is 1; otherwise is 0.

U means the total costs of the building costs and other costs.

Cij is including the cost from Taihu center to the each DC, the costs from DC to the each retails and other associated costs

fi is including the building cost of the DC, including the construction fees and other associated costs.

1.1 when the DC is Taihu, the base.
U1is the total costs of the post costs (all air express), namely air express to Shanghai, Guangzhou, Beijing and Hongkong.
1.2 when the DC is Shanghai
U2 is the total cost of the building on DC (including all equipment and human resources and all post costs (air express to Shanghai), and post costs from Shanghai to Shanghai, Guangzhou, Beijing and Hongkong

In the first equation, compare with U1 and U2,which is lower, the plan is selected.
In the short-term, DC is not necessary in the planning.

In the long-term planning,

The equation would consider when these two equation is equal, to find out this point, the equation is relied on the demand (Xij) in the long term.

S base means the supply of Taihu, bases
In this equation, demand of retailers must equal or lower than the supply of the Taihu, base.

In the model, three equations are that
which is the relationship between the demand and supply;

which is the relationship between the Construction on DC and post fees

The total costs of the decisions on selection