Article ID: | iaor20084283 |
Country: | Netherlands |
Volume: | 176 |
Issue: | 1 |
Start Page Number: | 210 |
End Page Number: | 229 |
Publication Date: | Jan 2007 |
Journal: | European Journal of Operational Research |
Authors: | Min Hokey, Melachrinoudis Emanuel |
Keywords: | supply & supply chains |
To take advantage of economies of scale, a growing number of firms have begun to explore the possibility of integrating supply chain activities. The advent of such a possibility would necessitate the redesign of a warehouse network. Typically, a warehouse redesign problem involves the consolidation of regional warehouses into a fewer number of master stocking points and the subsequent phase-out of redundant or underutilized warehouses without deteriorating customer services. This paper develops a mixed-integer programming model to solve the warehouse redesign problem. The usefulness of the model was validated by its successful application to a real-world problem and by its sensitivity analyses when used with changing scenarios within a warehouse network configuration.