Abstract: To remedy the defects for lack of consideration of the demand change and customer satisfaction in many existing location models, this paper studied the problem under demand uncertainty and established a function which can measure customer’s satisfaction. With stochastic chance constrained programming approach, the study was extended to multiperiod decision area and a dynamic multistage multiobjective location model for distribution center (DC) was proposed. The problem objective was assessed by considering not only minimizing the cost during planning period, but also maximizing the customer satisfaction. To solve the model, this paper introduced a greedy heuristic algorithm based on assignment priority with high customer satisfaction. The computation results show that the noninferior solutions include the optimal solution of conventional location model which only seeks for minimization logistics cost, this model offers a more flexible and comprehensive decision support to distribution center location problem.

Key words: greedy heuristic algorithm, priority with high satisfaction, dynamic multistage location, stochastic demand