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This research studies the distribution network redesign of an actual electronics company. The problems are formulated based on multi-echelon capacitated Location Routing Problem (LRP) with two commodities: home products and service items. The objective function consists of three components: facility cost, closing cost of facility and transportation cost. We propose solution method based on clustering technique. The problem is decomposed into the Facility Location Allocation Problem (FLAP) anddoi:10.4186/ej.2019.23.1.49 fatcat:d3jdtklbeff6hem5q4wkqkgptq