A model for the optimal number and locations of public distribution centers and its application to the Tokyo metropolitan area

In Japan, distribution centers managed by public authorities have been designed to achieve global optimization for efficient logistics and to maintain the Japanese urban environment. From the standpoint of social logistics, global optimization should be pursued considering both the environment and the efficiency of business logistics. In this study, we propose two nonlinear mathematical programming models for obtaining the optimal number and locations of public distribution centers and elaborate on the algorithm for determining solutions. These models aim at reducing the amount of truck CO2 emissions while minimizing logistics costs, which consist of transportation, delivery and facility operating costs. Our models are applied to the Tokyo metropolitan area. As the result of that, an appropriate policy for the number and locations of public distribution centers is proposed.