A bi-level programming model is established to optimizing the logistics distribution center in the dynamic competitive environment, which considers the influence of service level, price, communicating convenience and distance on customer’s utility, and takes the relationship between service level and price into account as well. In the model, the enterprise acts as the leader, and the competitor acts as the follower. Furthermore, an iterative algorithm is designed based on the elitist and fast non-dominated sorting genetic algorithm, and a simulation example is studied. Analysis results show that the proportions of enterprise’s total profits and total sales are 49.19% and 55.66% respectively. The enterprise not only strikes an effective balance between the price and the service level, but also gains greater advantages on the market share with satisfactory profits.