• Title/Summary/Keyword: Location of Distribution Center

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Determining the Location of Distribution Center in Business Logistics (로지스틱스관리에서 배송센터의 입지선정)

  • 한수희;오형술
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.20 no.44
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    • pp.33-46
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    • 1997
  • The location decision problem for distribution center is one of the most important problem in business logistics system. Because the proportion of holding and transportation cost to physical distribution cost in our country exceed the 60%, a corporation must feel strong pressure to investigate the location problem for distribution center. This paper presents an algorithm for determining the best location of distribution center in consideration with physical distribution cost, demand, and customer location. The methods of determining the distribution center location is that firstly many of proposed sites are built up where demand position is distributed, and then optimal location of distribution center is selected.

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A Study on Location Selection Elements of Distribution Center in Korea (국내 보관형 물류창고의 입지선정 요소에 관한 연구)

  • Park, Woo-Seok;Park, Jin-Hee
    • Proceedings of the Korean Institute of Navigation and Port Research Conference
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    • 2016.05a
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    • pp.217-218
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    • 2016
  • Domestic distribution warehouse has been developed as a strategic strategic point for inventory management and shipping of goods for companies. Warehouse is classified as distribution center, transport center, complex center depending on the role. Currently, at the same time it is considering the price factor such as rent price or land price and and logistical capabilities when considering the location of domestic warehouses. The price evaluation factors has specific methods for the evaluation but logistical elements is not currently clear. In this study, we have studied location selection of distribution center considering the logistical elements through expert surveys.

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Location Selection Factors for International Distribution Center in Port Hinterland - A Review of Busan New Port Hinterland from User's Perspective -

  • Kim, Si Hyun;Shin, Gun Hoon
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.64
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    • pp.187-210
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    • 2014
  • As port functions change to act as an economic catalyst and take on a central position in industries engaged in international trade, port hinterland has become a significant component in international shipping. The success of port hinterland as a strategic base of logistic activities critically depends on location selection factor for international distribution center that links elements of global supply chain management. By examining multi-measurement items empirically, this paper analyzed location selection factor for international logistics distribution center in port hinterland, and evaluated Busan new port hinterland from the user's perspective. Employing exploratory factor analysis, the results revealed that the model structured around five factors incorporating geo-location and accessibility, availability, political supports, cost factors, and quality of business environment is valid and reliable in the context of the location selection factors for logistics distribution center in the context of port hinterland operations. The evaluation of Busan new port hinterland provides useful insights for strategic improvement to accommodate the users' expectation. Further, the model offers both a descriptive and diagnostic strategic management tool for port hinterland development and operations, to guide future improvement.

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A Study on Selection of Cross-Docking Center by Changing the Logistics Location (물류거점 변경에 따른 크로스-도킹 거점 입지 선정에 관한 연구)

  • Lee In-Cheol;Lee Myeong-Ho;Song Jeong-Eun;Kim Nae-Heon
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 2006.05a
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    • pp.1754-1757
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    • 2006
  • Recently many firms operate a cross-docking center in addition to run a distribution center to reduce logistics costs and maintain or enhance logistics service. However, it is true that many firms just operate their cross-docking centers as they are without any change, in spite of that the location of the cross-docking center should be changed and operated when the location of distribution center is changed and moved. This study presents the method that re-selects the location of the cross-docking center when the existing distribution center is changed. Describing the operation environment to apply the cross-docking system and the selection criteria of the cross-docking center under the environment of changeable logistics network, we define the simulation model which can analyze and select the location of the cross-docking center applied to a logistics field. The simulation model presents experiential algorithm selecting the location with the data of the demand point such as volume, transportation costs, and delivery distance.

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Location of the Distribution Centers in a Discrete Dynamic Distribution System (이산형 동적 물류시스템에서 물류센터의 위치)

  • Chang, Suk-Hwa
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.31 no.2
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    • pp.19-27
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    • 2008
  • This paper addresses determining the location of the distribution centers in a discrete dynamic distribution system. In discrete and finite time horizon, the demands of retailers are dynamic for the periods. Some locations among the retailers can be chosen for the role of the distribution centers at the beginning of each period. The distribution centers have to be located at the location of minimizing logistics cost. Logistics cost factors are the operation cost and the fixed cost of distribution center, and the transportation cost. The distribution centers of minimizing sum of operation cost, fixed cost and transportation cost are determined among retailers in each period for the planning period. A mathematical model was formulated and a dynamic programming based algorithm was developed. A numerical example was shown to explain our problem.

Analytic Hierarchy Process Modelling of Location Competitiveness for a Regional Logistics Distribution Center Serving Northeast Asia

  • Kim, Si-Hyun;Lee, Kwang-Ho;Kang, Dal-Won
    • Journal of Korea Trade
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    • v.24 no.3
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    • pp.20-36
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    • 2020
  • Purpose - As the global product network expands through both internationalization and diversification of the multimodal transportation system, corporate strategies have shifted to emphasize the importance of a high value-added international logistics system. To guide policies and strategies to attract relevant industries, this study aims to analyze the location competitiveness of regional logistics distribution center to serve Northeast Asia. Design/methodology - Multi-criteria techniques are considered to offer a promising framework for evaluating decision-making factors. This paper employed an analytic hierarchy process to analyze the hierarchal structure of determinants for selecting the location of a regional logistics distribution center. Adopting both qualitative and quantitative evaluations, this study suggest political implications for a regional logistics distribution center development, such as the direction of political support, service differentiation and infrastructure development. Findings - This study developed a location competitiveness evaluation model, based on the case study of the major port-cities in Northeast Asia. Evaluation model incorporates five factors underpinning 17 components extracted using factor analysis. The results revealed that the logistics factor is the most significant factor for evaluating the competitiveness of a regional logistics distribution center. The remaining factors were market, costs, and services environment. Comparing qualitative and quantitative evaluations, results provide useful insights for a regional logistics distribution center development in Northeast Asia. Originality/value - This study revealed differences between qualitative and quantitative evaluations. The finding implies that prior works on evaluation models of competitiveness has not successfully measured the gap between quantitative data and expert' evaluations. To overcome this limitation, this paper considered both actual data such as actual distance, cost, the number of companies located, and expert opinions.

Distribution Center Location and Routing Problem with Demand Dependent on the Customer Service (고객서비스에 따른 수요변화하에서의 분배센터 입지선정과 경로 문제)

  • 오광기;이상용
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.22 no.51
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    • pp.29-40
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    • 1999
  • The distribution center location and routing problem involves interdependent decisions among facility, transportation, and inventory decisions. The design of distribution system affects the customers' purchase decision by sets the level of customer service to be offered. Thus the lower product availability may cause a loss of demand as falls off the customers' purchase intention, and this is related to the firm's profit reduction. This study considers the product availability of the distribution centers as the measure of the demand level change of the demand points, and represents relation between customer service and demand level with linear demand function. And this study represents the distribution center location and routing to demand point in order to maximize the total profit that considers the products' sales revenue by customer service, the production cost and the distribution system related costs.

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A Study on the Improvement of Order-Picking Operation in S-Automobile Parts Distribution Center (S-자동차 부품 물류센터에서 오더픽킹 작업능력 향상을 위한 연구)

  • Park, Jung-Hyun;Park, Yang-Byung
    • IE interfaces
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    • v.17 no.4
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    • pp.450-458
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    • 2004
  • S-Distribution Center supplies parts to three plants of K-automobile manufacturing company. Since the three plants employ the JIT production system, it is important for S-Distribution Center to deliver small quantities of parts frequently and quickly on time. This paper presents a case study on the improvement of order-picking operation in S-Distribution Center. The study is focused on the reductions of move time and waiting time by redesigning the parts storage location, picking-order terminal location, retrieval policy, and equipment operation policy. The proposed operation system for S-Distribution Center is evaluated through a simple computation analysis and computer simulation. Furthermore, the reducible numbers of equipment and order pickers are investigated by performing a sensitivity analysis.

The Transportation Size and the Location of Distribution Centers in a Distribution System (물류시스템에서 수송크기와 물류센터의 위치)

  • Chang, Suk-Hwa
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.30 no.3
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    • pp.12-19
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    • 2007
  • 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.

A Study on the Location Characteristics and Present Distribution of Facilities in the Community (지역시설의 입지특성 및 분포현황에 관한 연구)

  • Jang, Taek-ju
    • Journal of the Korean Institute of Rural Architecture
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    • v.9 no.3
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    • pp.1-10
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    • 2007
  • This study aims to discuss the location characteristics and present distribution of facilities in the rural community. The purpose of this study is to suggest the basic data of the planning of facilities corresponding to the living sphere in community. The circumstances, location and distribution of the rural area facilities was analyzed through field investigation and interview. lt is necessary for ameliorating the income of inhabitants and the status of living environment to make a general local plan in developing rural area. That will be a solution to tackle the decreasement of population in the rural area. The survey's result is observed different by the feature of rural area, adjacence with near rural center, scale of rural center. So a standard of the various facility's arrangement plan must be established, and it must be enlarged in rural area.

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