The location decision problem for distribution center is one of the most important problem in business logistics system. Because the proportion of holding and transportation cost to physical distribution cost in our country exceed the 60%, a corporation must feel strong pressure to investigate the location problem for distribution center. This paper presents an algorithm for determining the best location of distribution center in consideration with physical distribution cost, demand, and customer location. The methods of determining the distribution center location is that firstly many of proposed sites are built up where demand position is distributed, and then optimal location of distribution center is selected.