Based on Grey Related Analysis for Selection of Agricultural Products Logistics Distribution Center Location

Ma Xiaoli Master of economical management college,

Northeast Agricultural University Harbin, China

marry86@126.com

Che Mingcheng Professor of economical management college,

Northeast Agricultural University Harbin, China

Abstract—The selection of agricultural products logistics distribution center location has become an important issue that is agricultural industrialization, logistics optimization. People reasonably select the location of logistics distribution centers that helps to reduce logistics costs, improve serviced levels, reduce logistics cycle, increase logistics efficiency, so that suppliers and customers have a smooth logistics, the quick information and increase the competitiveness of logistics services. In this paper, the authors apply the grey related analysis, according to the basic principles of grey related analysis, and analyze the selection of agricultural products logistics distribution center location, from natural environment, business environment, infrastructures and other factors, establish the index and the weight indicators determine the location of agricultural products logistics distribution center by calculating the grey correlation degree. Keywords-agricultural logistics; distribution center location; grey related analysis

I. INTRODUCTION

Agricultural products logistics is the agricultural products physical transfer process from producers supplying to consumers receiving. According to the market actual needs, people organically combine agricultural products`processing, packaging, transportation, storage, handling, delivery, distribution and information processing, and in this process, to meet consumers` needs about the aspects of high quality, variety, increase the added value of agricultural products, reduce excessive expense, improve the efficiency of distribution of agricultural products. [1]

Agricultural products logistics center is engaged in agricultural products equipment (goods collection, sorting, packaging, processing, distribution) and organize the seller's delivery, realize the selling and supplying of modern agricultural logistics facilities at the high level. The center is the logistics nodes, in which are a versatile, intensive specialized in agricultural products distribution system. The determination of distribution center location is the premise that effectively operates the logistics system of agricultural products, at the same time; it also is the core of the logistics system analysis, therefore, the selection of agricultural

products logistics distribution center location has a crucial role in decision-making. However, according to statistics, the producing and selling wholesale markets about agricultural products is still main form that dominate the industry chain of agricultural products or the supply chain of the raw-fresh products, the circulated process of agricultural products is still: the producer of agricultural products - producing wholesale market – selling wholesale market - retail market - consumer, therefore, agricultural products can be transported from producers to consumers that they will go through many hands. In view of consumers about the high demand, high standards of agricultural products (especially vegetables) and other green food preservation, quality. It is very meaningful that the agricultural products are delivered to consumers through the logistics distribution center of agricultural products at the fastest speed, the best quality. [2]

II. THE INFLUENCED FACTORS OF AGRICULTURAL PRODUCTS DISTRIBUTION CENTER LOCATION

The selection of agricultural products logistics distribution center location, not only to consider the cost factor, market factor, also need more consideration to the natural environment, business environment, infrastructures and the associated land resource utilization factors. According to the characteristics of agricultural products logistics distribution center location, trying to find a comprehensive evaluation method of the indicators, conduct an objective, accurate evaluation for the issue of the location. [3]According to the actual situation of agricultural products logistics distribution center location, the factors are divided the natural environment, business environment, infrastructures and other factors, each of the main factors has conducted a detailed analysis, shown in Figure 1.

III. GREY RELATED ANALYSIS METHOD

A. Grey related analysis Grey system is both the known information and

unknown or non-identifying information. The issue of agricultural products logistics distribution center location is a gray system. Non-identifying information main contain non-identified evaluation factors and the relationship of evaluation factors. [4]

2010 3rd International Conference on Information Management, Innovation Management and Industrial Engineering

978-0-7695-4279-9/10 $26.00 © 2010 IEEE

DOI 10.1109/ICIII.2010.470

628

2010 3rd International Conference on Information Management, Innovation Management and Industrial Engineering

978-0-7695-4279-9/10 $26.00 © 2010 IEEE

DOI 10.1109/ICIII.2010.470

628

Grey related analysis is a multivariate statistical analysis; it determines the extent of its closely linked through the

Figure 1. the influenced factors of agricultural products distribution center location.

proximity that is the curve of the sample sequenced data with the geometry parameters of the reference sequenced data curve. In general, the more similar geometry, the closer the trend, the greater the correlation, whereas the less. Grey correlated evaluation method conduct the advantage analysis, gain the evaluated result by calculating the grey related degree of the sample sequence and reference sequence. [5]

B. The procedure and method of grey related analysis The template is used to format your paper and style the

text. All margins, column widths, line spaces, and text fonts are prescribed; please do not alter them. You may note peculiarities. For example, the head margin in this template measures proportionately more than is customary. This measurement and others are deliberate, using specifications that anticipate your paper as one part of the entire proceedings, and not as an independent document. Please do not revise any of the current designations.

To determine the sequence Setting nkkXX .,2,1)(00 is the reference

series, minkkXX ii ,,2,1;.,2,1)( is the

sample series. is determined by the expert scoringis the secondary index score of the indicator system, the weights are calculated by AHP, and the third index score .

0X iX

To seek the initial scores In order to facilitate analysis, ensure that all indicators

are equivalent and the same order need handle the raw data and make them immeasurable steel and normalized, that is the initialization of sequences. Specific approach is to construct a new data series:

mikXXX i(XX

X iii

i 2,1,0)),(,),2(),1( ,,,

0

, ,

To seek the deviations of sequences minkXK )(,

0

M

Xk iiiiii ,)),(),2(),1((,)()( ,2,1

To seek the maximum and minimum deviation of two poles.

)(maxmax kiki

)(minmin kikim

To seek the correlated coefficient.

Mkm

i

Mkr i ))(0 (

)1,0(

mik ,2,1,2,1 n;,is the identifying coefficient, its role is to enhance the

significant difference between the correlated degrees; the range is usually 0.1-0.5.

To calculate the correlated degree

)(1n 1

00 krrn

kii i m,,2,1 [6]

IV. CASE

According to the actual situation, the manager, and five technical staffs who are engaged in agricultural logistics evaluated the specifical site of logistics distribution center location. The content of evaluation was shown in Table 1.

TABLE I. THE INFLUENCED FACTORS OF AGRICULTURAL PRODUCTS DISTRIBUTION CENTER LOCATION

First index weight Secondary index The weight of the hierarchy

Meteorological conditions

0.2413

Geologicalconditions

0.2501

Hydrological conditions

0.2369

Naturalenvironment

factors

0.2118

Terrain 0.2717 The level of labor

force0.1958

Land prices 0.2061 The character of

goods0.2063

Businessenvironment

factors0.3672

The level of service 0.1957

Naturalenvironment

factors

Businessenvironment

factors

Meteorological conditions

Geological conditions

Hydrological conditions

The influenced factors of agricultural products distribution center location

Terrain

The level of labor force

Land prices

The character of goods

The level of service

Basic cost of logistics

State of the infrastructures

Transportation

Public Facilities

The utilization of land

Other factors Environmental factors

Peripheral status

Policies, tax status

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Basic cost of logistics 0.1961 Transportation 0.5019 State of the

infrastructures 0.2859 Public Facilities 0.4981 the utilization of land

resources0.2519

Environmental factors

0.2508

Peripheral status 0.2493

Other factors 0.1351

Policies, tax status 0.2480

A. To determine the sequences The logistics manager scored the relative importance

extent of the evaluated indicators, and gave the reference data. At the same time, five technical staffs scored each of the specific secondary indicators. Evaluated scores range is 0-100.they determined the hierarchical weights of indicators by AHP, and determined the final sample sequences and reference sequences that they combined with the weights.The final determined data sequences: The standard reference sequence of the manager scored was:

0X = 74.1201, 68.6469, 71.0954, 76.1215The sample references of technical staffs scored was:

1X = 51.5285, 50.0000, 59.8793, 56.4185

2X = 75.1978, 72.1512, 78.4715, 79.4761

3X = 65.3438, 63.4622, 65.2487, 61.3227

4X = 41.3380, 39.3866, 42.5480, 32.4280

5X = 74.6876, 69.2689, 73.4273,79.6038

B. To seek the initial scores of the sequences According o the

formula ))(,),2(),1(( ,,,

0

, kXXXXX

X iiii

i , the

initial scores of the sequences were: ,

0X = (1.0000 0.9262 0.9592 1.0270) ,

1X = (1.0000 0.9703 1.1621 1.0949) ,

2X = (1.0000 0.9595 1.0435 1.0569) ,

3X = (1.0000 0.9712 0.9985 0.9385) ,

4X = (1.0000 0.9528 1.0293 0.7845) ,

5X = (1.0000 0.9274 0.9831 1.0658)

C. To seek the deviations of sequences According to the formula )()()( ,

0 kXKXk ii, the

deviations of sequences were:

1 =0.0000 0.0442 0.2029 0.0679

2 =0.0000 0.0333 0.0843 0.0299

3 =0.0000 0.0450 0.0394 0.0885

4 =0.0000 0.0266 0.0701 0.2425

5 =0.0000 0.0013 0.0239 0.0388

D. To seek the deviation of two poles 0000.0)(minmin,2425.0)(maxmax kmkM ikiiki

E. To seek the correlated coefficient

As , according toMk

Mmkri

i )()(05.0 , the

correlated coefficients were: 0.7329 =0.3741

=0.7844 =0.5898

=0.7291 =0.7550

=0.8199 =0.6337

=0.9895 =0.8351

F. To c correlated degree

According to the formul

)1(01r =1.0000 )2(01r = )3(01r)4(01r =0.6401

=1.0000)1(02r)4(02r

)2(02r )3(02r=0.8022

=1.0000)1(03r)4(03r

)2(03r )3(03r=0.5781

=1.0000)1(04r)4(04r

)2(04r )3(04r=0.3333

=1.0000)1(05r)4(05r

)2(05r )3(05r=0.7575

alculate the grey

a )(1 n

100 kr

nr

kii , the correlated

degrees were: =0.7941 =0.7655 =0.6967

G. ysis and evaluation based on correlated

to the evaluation of the five technical staffs and

st

N

How t er is the key of

01r =0.6870 02r 03r 04r

05r =0.8955

The analdegreesAccording the grey correlated degree of the manager, the similarity

between the evaluation of the fifth technical staff and the manager 05r =0.8955 was the largest, howerer, the similarity be en the evaluation of the first technical staff and the manager ( 01r =0.6870) was the smallest. The score of manager was ju a reference and did not represent the best; of course, People can choose the evaluation of experts as the best reference sequences.

V. CONCLUSIO

twe

o choose the best distribution centagricultural products logistics. In this paper, the authors apply the grey related analysis, not only to consider the cost factor, market factor, also need more consideration to the natural environment, business environment, infrastructures

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[1] Huang Yong, Chen ms and Solutions of Agricultural Products Logistics Development, Guangxi Social Science, 2004 (11)

and the associated land resource utilization factors, conduct a study about the issue of agricultural products logistics distribution center location, and select a company which specialized in agricultural products logistics that conduct the evaluation about the specific site of agricultural products logistics distribution center location. From the process of evaluation can be seen, a professional logistics distribution center of agricultural products can greatly facilitate the rapid development of the logistics industry.

REFERENCES

Jing Qi.The Proble

[2] Ma Xiaolan, Xu Kelin. The Study of Agricultural Products Distribution Center Location. Logistics Technology, 2007 (26).. [3] Ji San You, Liu Jing. The Analysis and Case of Logistics center location. Logistics Technology, 2009 (29). [4] Yuan Jiazu. Grey system theory and its application, Science Press, 2004 [5] Zhao Donghui, Luo YuXin. AHP Grey Related Analysis to Evaluate Liupanshui Water Diversion Project. Water Resources, 2006 (2). [6] Ling Chun Yu, Zhang DeZhi, LI Shuangyan. Grey Related Method in Logistics Park application. Modern logistics, 2005 (4)..

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