This paper primarily develops a heuristic algorithm for the design of logistics networks and evaluates its performance through comparison with similar algorithms. The model considered in this paper encompasses both strategic-level decisions, including the number and locations of distribution centers, and operational-level decisions, including order quantities and reorder points at individual distribution centers. The model was formulated as a nonlinear integer programming problem, and a heuristic algorithm utilizing the tabu search technique was developed to obtain approximate solutions. The developed model was subjected to simulations under various settings for performance comparison with an existing GRASP-based heuristic algorithm.