Model Design of Cross-border E-commerce Overseas Warehouse Location Selection Based on Game Theory

Abstract

In the traditional overseas warehouse location model, there is a lack of balance between the factors that affect warehouse location, resulting in a lower location satisfaction degree. For this reason, a model design of cross-border e-commerce overseas warehouse location selection based on game theory is proposed. First, it is necessary to set the operating mode of overseas warehouses, and determine the cost calculation plan and influencing factors. Secondly, the Nash equilibrium in game theory is used to balance the influencing factors. Finally, the realization mechanism of the two algorithms is described, and the specific model algorithm realization process is given. In order to verify the feasibility of the designed overseas warehouse location model, the design model and traditional model are used to select the location of overseas warehouses based on a company's survey data. The site selection results prove that the design model takes more factors into consideration in the site selection of cross-border e-commerce overseas warehouses, which results in higher satisfaction, and the model's operating efficiency is higher, which proves the feasibility of the model.