Title: A new mathematical model for locating distribution centres for attracting more retailers

Authors: S. Behrooz Emami; M. Ghandehari; S. Mojtaba Sajadi

Addresses: Department of Industries Engineering, Islamic Azad University, Najafabad Branch, Najafabad, 8514143131 Isfahan, Iran ' Department of Management, University of Isfahan, 8174673441 Isfahan, Iran ' Faculty of Entrepreneurship, University of Tehran, Tehran, Iran

Abstract: In today's competitive market, companies are trying to create distribution centres in different areas to attract more market. Given that the rival companies in that areas have a share of market, it will be important to establish these centres in different locations. The purpose of this article, is to get more distribution centres to attract new retailers, despite the competitive nature of the market, therefore a mathematical model, with two objective functions of maximising the market capture and the other minimising the sum of the cost of waiting and the travel time or distance of customers, the fixed purchasing costs and ordering costs is presented. Finally, objective functions of the considered model became an objective function using goal programming, Due to the complexity of the model and the lack of accurate and appropriate algorithms to solve them, using meta-heuristic algorithms such as tabu search algorithm, suitable locations for these centres is obtained.

Keywords: facility location; goal programming; tabu search; queuing systems; market capture; mathematical modelling; distribution centres; cost of waiting; travel time; fixed costs; purchasing costs; ordering costs.

DOI: 10.1504/IJPQM.2014.064474

International Journal of Productivity and Quality Management, 2014 Vol.14 No.2, pp.166 - 178

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 26 Aug 2014 *

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