Study on Logistics Center Location Based on AHP--- A Case... Baoding City

Study on Logistics Center Location Based on AHP--- A Case Study of
Baoding City
QI Lei WANG Guanghe
School of Civil Engineering,Agricultural University of Hebei,
[email protected]
P.R.China,
071001
，
Abstract: This paper takes Baoding as the example introduces the concept of Analytic Hierarchy
Process (AHP).Through in combination with the theoretical foundation of the regional development
planning it establishes the model, to analyzes the development of the logistics industry in Baoding and
plans the central park site. With the view to offer some experience to the logistics development planning
among the Chinese big urban agglomeration.
Key words: Logistics center; AHP; Baoding; Location
，
1 Introduction
Logistics Center is a space which has a variety of different types of logistics facilities and logistics
enterprises in the focus on the layout of the premises,
Baoding , which is Located in the central part of Hebei Province, is situated at Beijing, Tianjin,
Shijiazhuang Triangle area, in Beijing one hour economic cycle's center, the geographical superiority is
extremely obvious. In the city, the development of modern logistics market is lower than the national
average, the supply and demand gap larger, the software and hardware infrastructure is not sound.
Overall, the development of the logistics industry in Baoding stay mainly in the transport stage, there are
many urgent and problems need to improve and solve. Construction of Baoding logistics centre park, not
only could integrate the existing logistics resources of Baoding, improve the urban environment,
promote logistics enterprises and the rapid development of the industry chain, but also promote urban
investment, improve efficiency, reduce costs and benefit the regional economy Baoding and the rapid
development of the "11th Five-Year Plan" planning objectives to be accomplished smoothly.
This article will be applied the method of Analytic Hierarchy Process (AHP) potential, facilities,
functions and development potential of the four aspects of the site Baoding logistics centre to carry out
comprehensive analysis.
2 The concept of Analytic Hierarchy Process (AHP)
Analytic Hierarchy Process is the quantitative calculation of decision-making method to effectively
combine a qualitative judgment and decision-makers was first given in the mid-1970s by the
well-known American operations research scientist, the University of Pittsburgh professor T.L. Saaty .
Since 1982 AHP has been introduced to china, the scholars have attracted broad attention and interest to
this method, as its Succinct, practical and systematic, it will be used widely. The process is a complex
issue for the orderly decomposition hierarchical structure, through the people's judgment on the merits
of the decision-making sort programmed. When study the problems, it needs less quantitative data, but
contained elements of a clear distinction between the inner links. And its principle is deep, but the
operating procedure is simple. Even can used by the lack of expertise and training of people
3 The planning of Baoding logistics centre and analysis
3.1 Location concept
Baoding regional logistics planning and development focus should be integrated the geography,
economy, transportation, and other characteristics. The ultimate plans can be considered from the
following aspects:
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The key to logistics park development is scientific planning and rational distribution. If starts blindly
and constructs duplicated, it will not only to reduce costs, the cost will increase, but even engage in
some places would follow the development zone "instead of the open".
According to the principle of “system planning, coordinated development, realistic, scattered
stationing, accessibility, saving investment”, prepares for construction two levels of logistics parks:
(1) Building the regional logistics centre, the main function is inter-city transport or long-distance
transport. We unify the position characteristic, specific plans three logistics centre, as the shape like
Chinese Characters” ”:
The first, High-tech Zone Logistics Park: The declaration to the district centre, hi-tech development
zones and the Centre for Post as a backing, through the guidance of policy and portfolio, build a
logistics park.
The second, Southern District Logistics Park: To Train Station, the railway freight yard and the
warehouse park in Nandayuan Township as a backing, with rail freight yard and the Great Wall
Automobile Industry Park Southern District in the large and medium-sized enterprises sourcing, build a
logistics park.
The Third, Northern District Logistics Park: In the passenger transportation center to the east entrance
of high-speed along the East Second Ring Road, and building a fairly large scale warehousing logistics
park. With the main freight transfer, processing, transporting mainly.
(2) Building the cities and counties Logistics Center
We unify the industrial layout and business characteristics in cities and counties, Baoding logistics
centre to rely on the establishment of counties and the city of Center site. Through the networking and
the electron trading mode, realize the network operation. In this, incorporate the center of Xushui and
Northern District Logistics Park; the center of Mancheng Xushui and High-tech Zone Logistics Park;
the center of Qingyuan and Southern District Logistics Park to network.
品
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3.2 Use specific analysis of AHP
3.2.1 Establish hierarchy model
Utilize the AHP in above appraisal factor analysis's foundation the factor which contains the system to
carry on the grouping. Each Unit as a level, in accordance with the highest level, a number of middle
layers and the formation of the bottom of the order, form a relatively complete system, as a basis for the
analysis of the next steps. In order to ensure a scientific and rational logistics center location to location,
even more scientific evaluation of the programmer and easy to operate, and after careful consideration,
select the hub of logistics centre site evaluation index system such as Table 1.
Logistics base site evaluation ranking
Potential
Facility
Function
Development potential
Site 1
Site 2
……
Site n
Table 1 index system
3.2.2 Building the judgment matrix
Building the judgment matrix analytic hierarchy process is the most critical step, it is the work of
the AHP starting point. Judgment Matrix is the process of the formation of people's subjective
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quantification of thinking; the problem is the basis of the analysis of information. In the judgment
matrix structure, people are usually adopted 9 scaling law by the United States Operations
Scientist-A.L.Satty. As this paper will be used AHP logistics hub with the location of the layout, the
main factors is potential, facilities, functions, in areas such as development potential, therefore it has the
suitable complexity and the fuzziness in the judgment process. For example, the criteria for potential
traffic under the terms of the potential targets, people generally know that Highway environment more
important than the railroad environment, but what is important is slightly or significantly important, it is
difficult to grasp, so that the experts and policy makers to judgment matrix was given very difficult. In
here we reference Baoding district and the surrounding counties of making the relevant data, to make
comparison, the site for the location, rather than exact values obtained. Therefore, we select an improved
standard of law - three scaling method to solve the problem.
The difference between three scaling method and the others is that it builds a comparison matrix ：
B=(b ij ) nxn at first , and bij defines as：
bij =
2
When factor i is more important than j
1
When factors as important as
0
When factor
Then We calculate: ri =
i and j
（1）
j is more important than i
n
∑b
ij
(i=1,2,L,n) ,get use the following formula to get the judgment
j=1
matrix : C=(cij ) nxn ，
ri − rj
Cij=
rmax − rmin
( b m − 1) + 1
 rj − ri

( b m − 1 ) + 1

 rmax − rmin

When ri ≥ rj
(2)
−1
When ri <rj
( )
Because of : rmax = max ( ri ) ，rmin = min ( ri ) ，b m = rmax / rmin ， Then C= cij
i =1
i =1
nxn
is dealing with
the judgment matrix
3.2.3 Sort of level
Sort of level refers to the use of the same level in all levels of single-sort on the level, as well as the
results of the weights of all the elements to the overall goal of view, all the elements of this level
weights of the process. It needs to process in layers from the top of the order. And for the second layer,
single-sort of sort, other layers to the order of ranking.
After establish the hierarchical structure, the upper and lower levels of membership relations between
the elements were identified. Sitting at the regional logistics base level structure of the sort, each
criterion is different in the appraisal influence; each target is also different in various criteria's influence.
According to experiences and solicits the concerned expert advice, we need to various criteria, various
targets importance to bestow on the child corresponding weight. We combine the criteria, the weighting
of the index, to compare the elements of each programmer. After sorting, by all objective location
relative to the total weight of the combination (sort percentile), according to the size of percentile
ranking, finally we could eventually be given the site for the regional logistics base sequence.
In here we reference Baoding district and the surrounding counties of making the relevant data, to
make comparison, the site for the location, rather than exact values obtained.
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mark
C1
C2
C3
C4
Table 2 evaluation criteria index weight
Criterion level
Target level
project
weight
mark
project
C11
Geography potential
potential
30
C12
Transportation potential
C13
Environmental condition
C21
Cargo facilities
facility
30
C22
Infrastructure
C23
City backing
C31
Market function
function
15
C32
Processing function
C33
Warehousing function
C41
Logistics development space
Development potential
25
weight
10
15
5
12
12
6
4
4
7
10
C42
Relying on Environment and
Development Prospect
5
C43
Economic development forecast
10
According to the above principles, and calculated finishing summary, we can complete each city
quantitative indicators percentile work. Each regional economic, social and environmental resource
depends on the general level of 12 indicators and weighted average scores. We use AHP method can be
obtained by multiplying the total value of the right sort corresponding item scores, the final, and then
add 12 products can be obtained every geographical region of the weighted average score. As a
reference to the Southern District recorded as 80 points, the geography potential 7, the traffic conditions
13, the environmental condition 3, the collection moves out the facility 10, the infrastructure 9, the city
depends on 5, the market function 3, the processing function 3, the warehousing function 7, the physical
distribution development opportunities 8, depend on the environment to forecast 5, the economic
development forecasts 7.
3.3 Comprehensive Evaluation
From the jurisdiction of Baoding City and the surrounding counties we can see that in the economic,
social and environmental resources, the overall level of development they still have a gap. On the
integrated level, the Northern District scored the highest, 91 points, are 1st; the New Urban District 85
points, are 2nd; as the reference Southern District 80 points, are 3rd; the Xushui 71 points, are 4th; the
Qingyuan 69 points, are 5th; the Mancheng 65 points, are 6th. (Below 60 points omit, Dingzhou and
Zhuozhou include within the Beijing-Guangzhou Railway road directly, is not involved in the
assessment. Above all it shows that in the Baoding jurisdictions, the Northern District of the economic,
social and environmental resources Comprehensive Development level is the highest, has obvious
advantages, it compared to the 2nd new urban district higher than 6 points, between different regions,
other has a gap, which, among six districts around Baoding, other scores had not yet reached the pass.
According to the siting of the regional logistics base and the principle of combining sort percentile,
Finally we select the north of the New Urban District (up to development zone), the Northern District
East and the Southern District, three as a regional logistics base in Baoding city planning and site
selection, Three surrounding counties will be exempted as radiation outlets. In this, incorporate the
center of Xushui and Northern District Logistics Park; the center of Mancheng Xushui and High-tech
Zone Logistics Park; the center of Qingyuan and Southern District Logistics Park to network.
、
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4 Conclusions
As a new decision tool AHP has its own strengths. It could divide economic, social and environmental
resources of this complex, huge project into distinct, which have different levels of contact, Not only
solved the problem of qualitative, but also the quantitative problems between them, and determine a
general method to the relative importance of the right to resolve the issue of value. In this paper, the
method of Baoding Logistics Center site planning is a comprehensive evaluation example, AHP will be
applied to logistics center location, and give full consideration to the traffic convenience, reasonable and
sustainable economic factors, taken a combination of quantitative and qualitative phase, the system can
solve the problems of logistics center location, a good effect, and the actual anatomizes. It has some
practical significance and value.
References
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Dalian Maritime University, 2003.01
[2] Li Youzhen. AHP applied in selecting location of logistics center. Journal of Qinghai Normal
University (Natural Science Edition), 2003.02:17~20
[3] Fu Xinping. The Application of Hierarchy Process in the Site Selection of the Logistics Center.
World Shipping, 2002.25(4): 23~24 28
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