Abstract: This paper studies the mathematical modeling of underground logistics system based on the theory of optimization. First, we introduce reasonable hypotheses. On this basis, we determine the number and location of the first and second level nodes by the set covering model. Based on the Baumol-Wolfe model, minimizing the total cost as the objective function determines the pipeline construction among the nodes at all levels, the Matlab programming genetic algorithm is used to solve the model, and to get the optimal path. Considering the situation of increasing actual traffic demand, we cluster nodes by traffic volume, confirm the construction route for each construction period, and establish a dynamic sequence evolution diagram. Finally, we summarize and analyze the process and results of the solution.

Key words: set covering model, Baumol-Wolfe model, genetic algorithm, fuzzy clustering