Abstract—In order to reduce the cost of China's "homeappliances going to the countryside" effectively, the centralizedlogistics centre in a province was put forward to carry out the logisticsdistribution. The model based on the exact centre-of-gravity method was builtto analyze the location of these centralized logistics centers. Liaoning Provincewas taken as an example to show the process of calculation. Results show that the optimal location of thecentralized logistics centre can make the logistics costsof "home appliances goingto the countryside" reduced well. The government and the enterprisesparticipating in "home appliances going to the countryside" can planthe logistics distribution centers with this result.

Keywords- home appliances going to the countryside; logistics center; distribution; location                                                                                                                                                              I. Introduction

Theglobal financial crisis has had the negative effects on China's real economy. Therefore, Chinahas taken "maintaining growth, expanding domestic demand and readjustingstructure" as the main measure to deal with this problem. One of thesemeasures is to promote "home appliances to the countryside" acrossthe country. This measure has promoted the development of domestic marketindeed. However, an unavoidable question is that the logistics costs of China's"home appliances to the countryside" have always been too high. Thereare many reasons which lead to this problem, such as the poor transportationconditions in rural areas and so on. In addition there is a more important reason,which is that the logisticsdistribution system of China's"home appliances to the countryside" is disordered. The distributionenterprises of “home appliances to the countryside” don’t optimize theallocation according to the market demand, which eventually leads to theincrease in logistics costs.

We have known thelogistics theory that the centralized logistics distribution can reduceeffectively logistics distribution costs though there may be some loss in termsof timeliness. For rural consumers, it is obvious that they are more concernedabout the price of commodities, rather than the timeliness. Therefore, it isnecessary to set up the centralized logistics distribution center according tothe market demand characteristics of "home appliances to thecountryside" in a province.