Abstract: A model of location allocation was set up to approach further to the actuality of goods/service distribution, based on the conventional 0-1 mixed programming model by Baumol-Wolfe. A heuristic algorithm was proposed to combine different customers' demands into a minimum wrap-net for the location of distribution centers in accordance to the assumption that in every defined service area of a distribution center the aggregate demand of a group of customers is equal or near to the integral multiple of unit vehicle capacity. The minimum wrap is formed by taking a distribution center as a basis point and connected to other centers with straight lines as distances. Making bisectors vertical to these lines and forming a minimum wrap are envoloped, in which all the tangent points of the circles taking relevant half of such distances as radii, so that a shortest distance is available to a defined group of customers to go to a nearest center as they are within its service area. The algorithm has the advantage of taking account of not only the different distances among customers but also their different distance demands. The model will benefit the solution to actual location-allocation problem. The computer simulation proves the validity of this method.