Determining an optimal warehouse location, capacity, and product allocation in a multi-product, multi-period distribution network: a case study

Chau Thi Diem Le, Jirachai Buddhakulsomsiri, Chawalit Jeenanunta and Aussadavut Dumrongsiri

International Journal of Logistics Systems and Management, 2019, vol. 34, issue 4, 510-532

Abstract: This paper addresses the distribution network design problem in a complex four-echelon supply chain system that includes factories, internal warehouses, external warehouses and customers. The distribution network contains a large number of products and considers 20 periods of planning horizon. Product deliveries are made using two shipment methods, direct shipment from internal warehouse and through shared external warehouse, to two groups of customers, domestic and overseas, with deterministic demands. The objective is to determine an optimal location of a new external warehouse, its capacity, and product-facility-market allocation so as to minimise the total logistics cost, including transportation and warehousing costs. A real-world large-scale problem from industry is solved optimally using a mixed integer linear programming model. A sensitivity analysis on three key parameters, product demand, unit transportation cost, and unit warehousing cost, is conducted to find the final solution.

Keywords: facility location; capacity; product allocation; distribution network; four-echelon supply chain; multiple products; multiple periods; multi-modal; multiple storage types; case study. (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=103517 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijlsma:v:34:y:2019:i:4:p:510-532

Access Statistics for this article

More articles in International Journal of Logistics Systems and Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().