Logistics Village Location with Capacity Planning Problem, an MILP Model Approach

Amirhossein Baghestani, Mohammadhossein Abbasi, Saeed Rastegar, Amir Reza Mamdoohi (), Atoosa Afaghpoor and Mahmoud Saffarzadeh
Additional contact information
Amirhossein Baghestani: Faculty of Civil, Water and Environmental Engineering, Shahid Beheshti University, Tehran 1983969411, Iran
Mohammadhossein Abbasi: Faculty of Civil & Environmental Engineering, Tarbiat Modares University, Tehran 14115, Iran
Saeed Rastegar: Industrial Engineering School, Iran University of Science and Technology (IUST), Tehran 1684613114, Iran
Amir Reza Mamdoohi: Faculty of Civil & Environmental Engineering, Tarbiat Modares University, Tehran 14115, Iran
Atoosa Afaghpoor: Faculty of Urban Development, Tehran University, Tehran 141556458, Iran
Mahmoud Saffarzadeh: Faculty of Civil & Environmental Engineering, Tarbiat Modares University, Tehran 14115, Iran

Sustainability, 2023, vol. 15, issue 5, 1-14

Abstract: The optimal location for establishing logistics centers is of great importance in reducing logistics costs and improving supply chain efficiency. This paper aims to provide a conceptual framework for finding the optimal location and capacity for a logistics village establishment using mixed-integer linear programming (MILP). The proposed model is applied on Qazvin province, Iran, as a developing country with a strategic location in international transport corridors. Unlike previous research, the proposed approach considers various logistics operations such as warehousing, refrigeration, sorting, and packaging, along with their capacities as distinct decision variables. The study area is divided into 6972 blocks of 1.5 × 1.5 km, of which 59% are infeasible and excluded due to environmental and natural hazard constraints. The MILP model is then applied in the GAMS for each feasible block to identify the best alternatives for the logistic village establishment with maximum total profit. Based on the results, total freight imported to Qazvin province is directly transferred to their final destinations without visiting the logistics village, while around 98% of exports of Qazvin province would first enter the logistics village to get a service before delivering to customers.

Keywords: logistics village; hub location problem; mixed-integer linear programming; developing country (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/5/4633/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/5/4633/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:5:p:4633-:d:1088374

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().