Optimization of Supply Chain Design Based on Knowledge Discovery of Distribution Network

The optimization of supply chain distribution network need to consider many factors, especially useful information derived from distributors. In this paper, We consider a supply chain consisting of two layers, they are one manufacture and many distributors. Each distributor has full knowledge about his own value-added cost structure. The problem is to design the optimal distribution network for the manufacture. The approach of Network DEA is used to evaluate distributors’ relative validity and finish the filtration of distributors, and through these results the process of distributor selection is completed. At the end of this paper, a numerical example is given.