This paper conducts an analysis of the site selection methods for power grid material distribution centers. It proposes the fundamental principles for site selection and organizes and compares representative models and commonly used methods in site selection issues. Taking the establishment and solving process of the site selection model for power grid material distribution centers as an example, the specific methods and procedures of Sparrow Search Algorithm applied to site selection problems are explained, and analyzes the shortcomings of this method. Finally, building upon the comparison and summary of simulated annealing algorithm and Sparrow Search Algorithm in the preceding sections, this paper combines their strengths to propose an approach for optimizing the solution method that is, using the former to update the iterative optimal solution of the latter, in order to reduce the risk of falling into local optimization, enhance the accuracy of problem-solving, and improve distribution efficiency. This contributes as a reference for similar site planning and decision-making processes.