The　location　and　allocation　of　regional　distribution　center　is　the　key　problem　of　logistics　distribution　network,　it　concerns　that　whether　the　distribution　system　can　perform　efficiently.　The　paper　sets　up　a　mathematic　location　model　of　generalized　transportation　costs　on　basis　of　economic　scale,　and　then　solves　Location　and　Allocation　Problem　of　regional　distribution　center　by　means　of　Fuzzy　graph　theory.　Finally,　compares　the　solution　of　Fuzzy　graph　theory　with　the　one　of　dynamic　cluster　analysis　through　an　example,　it　shows　that　the　use　of　Fuzzy　graph　theory　in　solving　this　problem　can　decrease　the　calculating　scale　and　time　evidently,　especially　when　the　Fuzzy　equivalent　matrix　can　not　be　ascertained,　this　algorithm　is　feasible　and　effective.　©　2010　IEEE.