Determining an optimal warehouse location, capacity, and product allocation in a multi-product, multi-period distribution network: a case study
by Chau Thi Diem Le; Jirachai Buddhakulsomsiri; Chawalit Jeenanunta; Aussadavut Dumrongsiri
International Journal of Logistics Systems and Management (IJLSM), Vol. 34, No. 4, 2019

Abstract: This paper addresses the distribution network design problem in a complex four-echelon supply chain system that includes factories, internal warehouses, external warehouses and customers. The distribution network contains a large number of products and considers 20 periods of planning horizon. Product deliveries are made using two shipment methods, direct shipment from internal warehouse and through shared external warehouse, to two groups of customers, domestic and overseas, with deterministic demands. The objective is to determine an optimal location of a new external warehouse, its capacity, and product-facility-market allocation so as to minimise the total logistics cost, including transportation and warehousing costs. A real-world large-scale problem from industry is solved optimally using a mixed integer linear programming model. A sensitivity analysis on three key parameters, product demand, unit transportation cost, and unit warehousing cost, is conducted to find the final solution.

Online publication date: Fri, 08-Nov-2019

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Logistics Systems and Management (IJLSM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com