The rapid development of China’s economy, especially the rapid rise of the logistics and distribution industry in recentyears, coupled with the rise of e-commerce in recent years, has created a huge impact on the traditional logistics industry.Aiming at the sorting system of small and medium-sized logistics distribution centrer, this paper proposes an item allo-cation strategy based on customer demand in combination with practical application requirements and adopts the directdynamic clustering algorithm based on hierarchical clustering. As a clustering index, all items in the distribution centreare clustered and the final clustering result is obtained. The results show that the maximum value of segmentation usingthe single connection method is 5.8, reflecting that the distribution distance is more advantageous; the maximum value ofthe segmentation method using the median method is 2.94, and the minimum value is 2.35, which reflects that the result ofthe algorithm is relatively uniform. A reasonable item allocation strategy has a certain positive effect and influence on thedevelopment of modern logistics and the service quality of the logistics industry.
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