Abstract:In the paper,distribution center location planning is studied,with the goal of minimizing the total cost of the logistics system. The government determines the distribution center location plan. The clients choose appropriate suppliers and travel routes to minimize the total cost,given the distribution center plan and traffic flow conditions. A bi-level programming model is proposed to minimize the total cost of the logistics sys-tem,considering user’s equilibrium and investment constraints. The upper level program aims at minimizing the total cost of the logistics system,and the lower level program describes a Logit-based stochastic user equi-librium. The lower level problem is then transferred into an equivalent convex programming model. An algo-rithm is developed to solve the bi-level model,and is demonstrated by a numerical example.