Modelling and analysis for capacity expansion planning in warehousing

G Cormier and E A Gunn
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G Cormier: Université de Moncton
E A Gunn: Dalhousie University

Journal of the Operational Research Society, 1999, vol. 50, issue 1, 52-59

Abstract: Abstract In this paper, a dynamic programming model is developed for the purpose of establishing a warehouse capacity expansion schedule and underlying multi-item inventory policy that are jointly optimal. The optimal warehouse size over any segment of the planning horizon is obtained by solving a nonlinear optimisation problem, this being accomplished efficiently by exploiting the Kuhn–Tucker conditions. Repeating this procedure between each pair of time periods results in a discrete state space, so that the optimal capacity expansion schedule corresponds to a shortest path in a network. Managerial insights are provided through experimentation with the model.

Keywords: warehousing; capacity expansion planning (search for similar items in EconPapers)
Date: 1999
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DOI: 10.1057/palgrave.jors.2600671

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