Article ID: | iaor200070 |
Country: | United Kingdom |
Volume: | 34E |
Issue: | 3 |
Start Page Number: | 173 |
End Page Number: | 186 |
Publication Date: | Sep 1998 |
Journal: | Transportation Research. Part E, Logistics and Transportation Review |
Authors: | Turnquist Mark A., Nozick Linda K. |
Keywords: | facilities, inventory |
An important question in the design of efficient logistics systems is the identification 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.