Investigation of Location Problem in Logistics Centers Using ADMM Algorithm

As the heart of modern logistics systems, the siting of logistics centers has always been a pressing and complex issue in the field of logistics management. A suitable logistics center location model is vital for the efficient functioning of the entire supply chain. In this study, we establish a decision model for logistics center location based on the operational process of the logistics center, with the sum of the construction cost, storage cost, and transportation cost of the logistics center serving as the objective function. The ADMM algorithm, combined with the Lagrange multiplier method, is employed to solve the model, yielding an optimal solution and corresponding supply and demand scheme. The reliability of the model is confirmed by simulation data, and the results of the case study demonstrate that the model holds significant reference value for the siting of logistics center construction.