The Transportation Size and the Location of Distribution Centers in a Distribution System

물류시스템에서 수송크기와 물류센터의 위치

  • Chang, Suk-Hwa (Dept. of Industrial and Management Engineering, University of Incheon)
  • 장석화 (인천대학교 산업경영공학과)
  • Published : 2007.09.30


This paper is to determine the transportation size and the location of distribution centers to minimize logistics cost in a distribution system where products are transported from the distribution centers to the retailers. Logistics cost consists of the fixed cost of distribution centers, the transportation cost from the distribution centers to the retailers and the inventory holding cost in the retailers. The logistics cost is affected by the transportation size and the location of distribution centers. The transportation size affects transportation cost and inventory holding cost. The location of distribution centers affects the transportation cost. A mathematical model is formulated and the algorithm is developed. A numerical example is shown to explain the problem.



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