Integrating inventory impacts into a fixed-charge model for locating distribution centres

Integrating inventory impacts into a fixed-charge model for locating distribution centres

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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: ,
Keywords: facilities, inventory
Abstract:

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.

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