Abstract: Given the special characteristics of logistics distribution center location under dual-channel supply chain， a multi-stage and multi-objective dynamic location model was formulated， which combined network direct marketing and traditional retailing channel of central warehouses based on customers’ stochastic demands. This model not only considered minimizing the operation cost， but also prioritized maximizing customer satisfaction and designing the formulas of opening， operation， closing and reopening cost in the planning stage. A chief-objective approach was used to turn multiple objectives to single objectives， and a greedy heuristic algorithm was developed based on customer satisfaction. It was shown that the computation results include the optimal solution to minimizing logistics cost， thus offering a more flexible and comprehensive decision support for central warehouse location under the dual-channel supply chain.

Key words: dual channel, stochastic demand, multi-stage dynamic location, customer satisfaction, greedy heuristic algorithm