Transportation Research Part E Logistics and Transportation Review · 1998 · 148 citations · 20 references
ManagementIndustrial EngineeringOperations ManagementFacility LocationInventory ControlInventory ManagementDistribution Center LocationInventory TheoryLocation StrategyLocation-allocation AnalysisLocation-allocation ModelsWarehouse LocationDistribution Center Location PlanningFacility AllocationFacility Location DecisionsFacility Location OptimizationFixed-charge Location ModelsFixed-charge Location ProblemLocation-inventory ModelsLogistics Facility Location
An important question in the design of efficient logistics systems is the identficaton of locations for distribution centers. Optimal designs should be based on consideration of inventory, transportation, construction and operating costs. This paper describes a method for including inventory costs within a fixed-charge facility location model, allowing such a model to be used more effectively for the development of optimal system designs. A realistic application of the model is discussed.
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